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.
Hidden Bullish Divergence - best divergence indicator
This setup confirms that a retracement move is exhausted. This divergence indicates underlying strength of an uptrend.
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.
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.