trend reversal

/Tag: trend reversal

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+00:00