This signal indicates the continuation of the development

The trend continued the downward movement. Strategy using hidden divergence and OsMa oscillator I recommend seeing here. Extended divergence The Forex extended divergence is very similar to the hidden one, however, its formation often deviates from the basic principles, since it is often carried out within the sides and rarely encounters pronounced peaks. Many traders do not consider an extended divergence as a signal at all and treat it as a false phenomenon. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance The bullish extended divergence is complemented by rising lows, while the bearish one is complemented by falling highs.


 See examples in the table. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance The image above shows an extended bullish divergence on the MACD indicator. The minimum prices are almost at  Peru Mobile Number List the same level (small deviations are allowed). But the second low of MACD is higher than its predecessor. of the uptrend. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance The bearish is also defined by an indicator, which draws a new lower high. It indicates that the price will continue to fall, so you can open a short position.






In the chart above, EURUSD and extended bearish divergence according to MACD indicates that the decline will continue. Slight deviations in size are allowed, but in general it is seen that the peaks are almost the same in the first and second graphs. The signal occurs in the lateral frame, which is a characteristic of this type of deflection. Main errors when detecting divergences Trading beginners often have to deal with false information about divergences on the Internet. Below I list the most common mistakes when dealing with divergences: 1. On many Forex trading sites, authors confuse divergence as follows: If, for example, the direction of the indicator is upward, they believe that the line drawn through the indicator's peaks are the highs.