Дивергенция | Brokerscout.ai
Divergence
Divergence is taken into account by traders as a signal of a future trend reversal. In translation, this concept means "divergence". At the Forex market it is a divergence of the price chart and the indicator chart, i.e. they go in different directions. It is impossible to determine the presence of divergence without the indicator chart. Traders who use this method in their trading, simultaneously keep the indicator window open in the terminal on the chart of the currency pair. Convergence is the opposite of the above term. It appears in the situation when the price and indicator charts are converging. Both signals indicate a rapid change in the direction of price movement. In simple words, divergence occurs when the price in the bull market is still moving upwards, but the buyers' strength has dried up, which is clearly hinted by the indicator. The same thing, but with the exact opposite, happens in a bearish trend when convergence is formed. The only way to detect convergence/divergence on a graph is manually. The work is laborious, but necessary. Comparing the same time segments of the price and oscillator curves, it is necessary to find a pair of local maximums on them, which differ in direction. If on the price chart the second maximum is higher than the first, and on the indicator chart it is lower, it means divergence. If the situation is reversed, convergence is observed.

Risk Warning

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility

Still have questions?

Leave a request and we will contact you within a day

Have you encountered scammers?

Have you been deceived, or do you know of a case of deception? Write to us about it