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4 TYPES OF DIVERGENCE

Formación
OANDA:AUDUSD   Dólar australiano/Dólar estadounidense
There are basically two types of divergence
trend continuation and trend reversal
1. trend reversal there are two types of divergence
a. regular bearish divergence :- price makes higher high and indicator makes lower high
b. regular bullish divergence :- price makes lower low but indicator makes higher low. its time for reversal.

2. in trend continuation there are further two type of divergence :-
a. hidden bearish divergence :-which means when price make lower highs but indicator makes higher high
it is sign of trend continuation .
b. hidden bullish divergence :-which means when price make higher lows but indicator makes lower lows
it is sign of trend continuation.


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