Exaggerated bullish divergence occurs when price creates two bottoms on relatively the same line, while the technical indicator diverges and has its second bottom at a higher level.
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The first trade turned out like a dream. The second left much to be desired. The Setup For the first signal in dark red , which occurred between November and December of , we have almost a textbook case of classic bullish divergence.
Price drastically hit a lower low while the MACD histogram printed a very obvious higher low. According to proponents of divergence trading, this type of price-oscillator imbalance foretells a price correction of the imbalance. In this case, the correction in price would need to have been a directional change to the upside.
That is exactly what happened. Like clockwork, as evidenced by the chart above, price turned up in early December and did not look back until the second divergence was completed. This first divergence signal was so strong that there was even a mini divergence shown in Figure 1 with dark red dotted lines within the larger divergence that helped to confirm the signal to go long.
Luckily, some of the subsequent bull run was caught as a result of spotting this very clear divergence signal early on. Anyone who caught this particular divergence play was richly rewarded with almost immediate profit gratification. Below, we will explain the method I used to trade it. The Trade The second divergence signal seen in dark blue , which occurred between mid-December and mid-January , was not quite a textbook signal.
While it is true that the contrast between the two peaks on the MACD histogram's lower high was extremely prominent, the action on price was not so much a straightforward higher high as it was just one continuous uptrend. In other words, the price portion of this second divergence did not have a delineation that was nearly as good in its peaks as the first divergence had in its clear-cut troughs. For related reading, see Peak-and-Trough Analysis. Whether or not this imperfection in the signal was responsible for the less-than-stellar results that immediately ensued is difficult to say.
Any foreign exchange trader who tried to play this second divergence signal with a subsequent short got whipsawed about rather severely in the following days and weeks.
Divergenze dirette Le divergenze strategia sono quelle che indicano inversa potenziale inversione del trend. Divergenze inverse Forex divergenze inverse individuano una potenziale continuazione del trend in strategia. Ora che abbiamo visto le varie tipologie forex dealers in kenya divergenze permettimi un rapido schema riassuntivo. Strategia Articoli tradingblog Impara a inversa Trading dai Migliori 14 giugno - Vuoi ricevere in anteprima tutti i divergenza esclusivi?
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