Best Divergence Indicator - Divergence Indicators

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

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

RSI Hidden Bullish & Bearish Divergence Setups

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

Hidden RSI Bullish Divergence Setup

Forms when the price is making/forming a higher low (HL), but the oscillator technical indicator is displaying a lower low (LL).

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

Hidden Bullish Divergence - best divergence trading indicator

This set-up 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/forming a lower high ( LH ), but the RSI is displaying a higher high ( HH ).

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

Hidden Bearish Divergence - best divergence technical indicator

This divergence setup confirms that a retracement move is exhausted. This divergence reflects the underlying strength of a down-trend.

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