Forex Videos

In this video you will learn about the difference between regular and hidden divergence, how to choose a proper divergence indicator and how to use it. The regular divergence is subdivided in to Bullish divergence and Bearish divergence.
Bearish divergence occurs when there is a trend reversal from up to down, i.e. when there are lower highs in the oscillator and higher highs in price.
Bulllish divergence occurs when there is a trend reversal from down to up, i.e. when there are higher lows in the oscillator and lower lows in price.
The regular divergence is a reversal pattern, while a hidden divergence is a continuation pattern. There are two types: Bearish hidden divergence and bullish hidden divergence. The Bearish hidden divergence confirms that price trend is down. i.e. there are higher highs in the oscillator and lower highs in price.
The Bullish hidden divergence confirms that price trend is up. i.e. there are lower lows in the oscillator and higher lows in the price.
Hidden divergence helps traders find entry in the direction of the trend such as entry, stop and exit levels in a trend.