{"id":9709,"date":"2022-10-12T20:09:28","date_gmt":"2022-10-12T20:09:28","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9709"},"modified":"2022-10-12T20:09:28","modified_gmt":"2022-10-12T20:09:28","slug":"divergence-cheat-sheet","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/divergence-cheat-sheet\/","title":{"rendered":"Divergence Cheat Sheet"},"content":{"rendered":"\n

Have you had your fill on learning how to trade divergences?<\/p>\n\n\n\n

Let\u2019s review!<\/p>\n\n\n\n

Divergence is a popular concept in\u00a0technical analysis\u00a0that describes when the price is moving in the opposite direction of a technical indicator.<\/p>\n\n\n\n

There are two types of divergences:<\/p>\n\n\n\n

  1. Regular divergence<\/strong><\/li>
  2. Hidden divergence<\/strong><\/li><\/ol>\n\n\n\n

    Each type of divergence will contain either a bullish bias<\/strong> or a bearish bias.<\/strong><\/p>\n\n\n\n

    Since you\u2019ve all be studying hard and not been cutting class, we\u2019ve decided to help y\u2019all out (cause we\u2019re nice like that) by giving you a Divergence Trading Cheat Sheet <\/strong>to help you spot regular and hidden divergences quickly.<\/p>\n\n\n\n

    Regular Divergence<\/h2>\n\n\n\n

    Regular divergences signal a possible trend reversal<\/strong>.<\/p>\n\n\n\n

    BIAS<\/th>PRICE<\/th>OSCILLATOR<\/th>DESCRIPTION<\/th>EXAMPLE<\/th><\/tr>
    Bullish<\/td>Lower Low<\/td>Higher Low<\/td>Indicates underlying strength. Bears are exhausted. Warning of a possible trend direction change from a downtrend to an uptrend.<\/td><\/a><\/td><\/tr>
    Bearish<\/td>Higher High<\/td>Lower High<\/td>Indicates underlying weakness. The bulls are exhausted. Warning of a possible trend direction change from an uptrend to a downtrend.<\/td><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Hidden Divergence<\/h2>\n\n\n\n

    Hidden divergences signal a possible trend continuation<\/strong>.<\/p>\n\n\n\n

    BIAS<\/th>PRICE<\/th>OSCILLATOR<\/th>DESCRIPTION<\/th>EXAMPLE<\/th><\/tr>
    Bullish<\/td>Higher Low<\/td>Lower Low<\/td>Indicates underlying strength. Good entry or re-entry. This occurs during retracements in an uptrend. Nice to see during the price retest of previous lows. \u201cBuy the dips.\u201d<\/td><\/a><\/td><\/tr>
    Bearish<\/td>Lower High<\/td>Higher High<\/td>Indicates underlying weakness. Found during retracements in a downtrend. Nice to see during price retests of previous highs. \u201cSell the rallies.\u201d<\/td><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    While divergences can occur between price and any other piece of data, they are most commonly used with\u00a0technical indicators, especially with\u00a0momentum\u00a0oscillators.\u00a0<\/strong><\/p>\n\n\n\n

    Examples of a momentum oscillator include the Commodity Channel Index (CCI), Relative Strength Index (RSI),\u00a0Stochastic, and\u00a0Williams %R.<\/p>\n\n\n\n

    Whew!<\/p>\n\n\n\n

    That\u2019s quite a lot to remember, isn\u2019t it?<\/p>\n\n\n\n

    You can write this all down in your palm and look back on it while trading.<\/p>\n\n\n\n

    But if you\u2019re like Eminem whose palms get sweaty, knees weak, and arms get heavy, when you\u2019re nervous, we wouldn\u2019t recommend this.<\/p>\n\n\n\n

    You can simply bookmark this page and just revisit it when you mix up those higher lows<\/strong>, lower highs<\/strong>, lower lows<\/strong>, and higher highs<\/strong>.<\/p>\n\n\n\n

    You don\u2019t want to make a wild guess while coming up with a trade, do you?<\/p>\n","protected":false},"excerpt":{"rendered":"

    Have you had your fill on learning how to trade divergences? Let\u2019s review! Divergence is a popular concept in\u00a0technical analysis\u00a0that describes when the price is moving in the opposite direction of a technical indicator. There are two types of divergences: Regular divergence Hidden divergence Each type of divergence will contain either a bullish bias or a bearish bias. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[781],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9709"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9709"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9709\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}