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Best Divergence Indicator - Divergence Indicators

The best divergence technical indicator is the RSI, traders can use this technical indicator to check divergence when trading forex currencies.

The 2 types of divergence -bullish & bearish divergence are described below.

RSI Hidden Bullish and Bearish Divergence Setups

Hidden divergence is used by traders as a possible sign for a trend continuation. Hidden divergence occurs when price retraces to retest a previous high or low.

Hidden RSI Bullish Divergence Trading Setup

Forms when the price is making a higher low (HL), but the oscillator is showing a lower low (LL).

Hidden bullish divergence in forex occurs when there is a retracement in an uptrend.

Technical Indicators for Divergence - How to Use Divergence Trading Indicators Explained

Hidden Bullish Divergence - best divergence indicator

This setup confirms that a retracement move is exhausted. This divergence indicates underlying strength of an uptrend.

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Hidden RSI Bearish Trading Divergence

Forms when price is making a lower high ( LH ), but the RSI is showing a higher high ( HH ).

Hidden bearish divergence in forex occurs when there is a retracement in a downtrend.

Indicators for Divergence - How Do I Use Divergence Trading Indicators Examples Explained?

Hidden Bearish Divergence - best divergence indicator

This divergence setup confirms that a retracement move is exhausted. This divergence indicates the underlying strength of a downtrend.