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What is a Divergence?

Posted by Morena Faceira on Senin, 14 Maret 2016

What is a Divergence?
Most of the time, as price rises, the indicator will rise with it, proportionately and in �harmony�. Without trying to oversimplify it, the general idea behind a divergence is that it occurs when that harmony is broken. 

When price and indicator make different highs or lows from each other. For example, a bearish divergence occurs when price continues to make �higher highs�, but the MACD histogram makes �lower highs�. A bullish divergence happens when the opposite takes place: price makes �lower lows�, and yet the MACD histogram does not, and instead makes higher lows. 

When this happens, it is a reliable sign that the price will experience a correction or even a trend change. The Forex LST System was created to not only show you and warn you about those particular instances, but also point out the best possible entries for it. It is an impressive tool and a �must� in every trader�s toolbox. Click Here!

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