What is a Divergence in Trading? 3 Trading Strategies Explained #divergencetrading #tradingstrategy
Divergence trading is a cornerstone concept in the realm of technical analysis. By comparing the direction of asset prices with the direction of momentum indicators, traders can notice subtle changes in market dynamics.
In this video, we’ll dive into the concept of divergence in trading, explaining how it can help identify potential trend reversals or continuations. We’ll cover the most popular indicators that form divergences with the price, offering a detailed breakdown of each type. Here’s what you can expect:
00:15 – What is a Divergence in Trading?
00:30 – Divergence Types
00:37 – Regular Divergence
00:59 – Hidden Divergence
01:25 – RSI Divergence
02:02 – MACD Divergence
02:38 – Stochastic Divergence
03:08 – How to Trade Divergences
By the end, you’ll understand how to spot divergences and incorporate them into your trading strategy!
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