Business

Varieties of divergence: Features of species

What are the types of divergence, the differences between them

Divergence divide by several types. The first species is called the counter trendy. This is when speculators try to trade against the trend.

There is also a classic divergence. Often this type is accompanied. With bear, try to sell when the price goes down, with bull, on the contrary, you need to buy, because the price will increase. There is also a hidden divergence. When there is an illusion that the trend continues, but in fact the transaction is considered closed. There is an expanded divergence. When it is a bear, you need to prepare for the fact that you will need to sell, because the price schedule is significantly reduced.