Best Divergence Indicator - Divergence Forex Indicators

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

The two types of divergence -bullish and bearish divergence are explained below.

RSI Hidden Bullish and Bearish Divergence Forex Trading Setups

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

Hidden RSI Bullish Forex Trading Divergence Setup

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

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

Hidden Bullish Divergence - best divergence indicator

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

Hidden RSI Bearish FX 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 trading occurs when there is a retracement in a downtrend.

Hidden Bearish Divergence - best divergence indicator

This forex divergence etup confirms that a retracement move is complete. This forex divergence indicates underlying strength of a downtrend.