How to use Divergence Analysis in Your Trading

Posted in US | Trade Tap Blog | Technical Analysis
4 minute read
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As part of a balanced trading strategy, divergence analysis can prove a useful tool, especially when trying to predict changes in overall market trend.

If you’re looking to add another technical skill to your trading, read on.

What is Divergence

The Different Types of Divergence

Price Divergence with Another Instrument Price

Price Divergence with an Oscillator

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Source: TradingView, EUR/USD 06/13/23

Price Divergence with Volume indicators

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Source: TradingView, EUR/USD 06/13/23

Price Divergence with an Oscillator - Rate of Change

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Source: TradingView, EUR/USD 06/13/23

Price Divergence with Sentiment - Commitments of Traders

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Source: TradingView, EUR/USD 06/16/23

Why do Some Traders not use Divergence Analysis?

Conclusion

Disclaimer