What is a divergence on Forex, why is it needed

What is a divergence on Forex

Almost all traders are interested in the effectiveness of technical analysis, and try to find the best indicator.

In this case, you should turn to such a concept as divergence. Divergence helps to consider the moment that precedes the market behavior in a short period of time, when the market is gaining momentum, the moss to notice that the force that needs to be developed simply exhausted.

With the help of divergence, you can track when the price of the Forex market rose to the maximum level, but an even larger level is not displayed by the oscillator, that is, the maximum is still formed below.

This says that the market has become weaker, and soon big changes are coming. Divergence is called bull, when the market goes up and bear, when, on the contrary, it goes down.