Divergences are powerful trade entry and exit signals. Unlike most other signals that are lagging, divergences are powerful leading signals. There are two types of divergences. Regular divergence which is a trend reversal signal and hidden divergence which is a trend continuation signal. You should use divergence signals in your trading. You can use MACD, Stochastic, RSI, CCI and any other oscillator for spotting a divergence. The trick lies in identifying this pattern correctly. There will be many false signals. You need to learn how to filter out bad trades and don’t jump into the market without confirmation. This is very important. Don’t jump into the market without confirmation. Watch the videos below that explain in detail how to trade hidden and regular divergences. The first video explains in detail how to trade divergences!
This video explains in detail how to trade hidden divergences!
This is another good video on how to master divergences!
This video gives a few good examples of divergence trades!
https://www.youtube.com/watch?v=sHHKlzMwfF8
This video explains how hidden divergence can keep you out of bad trades
This is another good video on how hidden divergences can keep you out of bad trades!
https://www.youtube.com/watch?v=N2rbfEWleDs
This video explains how to trade divergences using stochastic oscillator!