FOREX THEORY
How To Trade Divergences
Next, let’s take a look at an example of some hidden
divergence. Once again, let’s hop on to the daily chart of USD/CHF.
Here we see that the pair has been in a downtrend. Notice
how price has formed a lower high but the stochastic is printing higher highs.
According to our notes, this is hidden bearish divergence!
Hmmm, what should we do? Time to get back in the trend?
Well, if you ain’t sure, you can sit back and watch on the
sidelines first.
Hidden Bearish Divergence on Daily chart of USD/CHF
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