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Trading Divergence: Understanding it, the right way

Convergence and Divergence are leading indicators, which help identify trend reversals at the outset. The leading indicators are the ones which give signals about an event at the early stage. Since the signals are premature, there are considerable risks associated with it. Hence it becks the question- should you be trading divergence and convergence? But before answering the question, let us have a deep understanding of the CDC of trading- Convergence, Divergence and Congruence. Divergence When the price of an instrument makes a new high or new low, and if the indicator, say RSI or MACD, doesn't make a [...]

Trading Divergence: Understanding it, the right way2018-10-30T12:36:18+04:00

Fundamental vs Technical Analysis: #9 differences that matter

For starters, there are two types of analysis- fundamental and technical analysis. The former calls the later as pseudoscience or voodoo science, while the latter shrugs it off saying ‘as long as I’m in profit, what matters’. But, for a new trader, a question always lingers in mind, which side he/she should opt in- Fundamental vs Technical Analysis. Let us have a brief glimpse of what is what, first. Fundamental Analysis It is the study of accounting books of a company, its stakeholders, and the management’s competency to deliver profits, in the case of stocks. In forex, it turns [...]

Fundamental vs Technical Analysis: #9 differences that matter2019-05-13T17:19:35+04:00