Regular Divergence Indicators:
http://iticsoftware.com/divergence-indicators
Advanced Regular Divergence Indicators:
http://iticsoftware.com/advanced-divergence
Hidden Divergence
The Regular Divergence is used very often, but it is not the only one kind of divergence. There is another type of
divergence – a Hidden Divergence. It is not as widespread as the Regular Divergence, but is much more effective. The
main difference between the Regular Divergence and the Hidden Divergence is that the latter is a continuation
pattern.
There are two subdivisions of the Hidden Divergence: the Bearish Hidden Divergence and the Bullish Hidden
Divergence. The Bearish Hidden Divergence confirms, that price trend is down, i.e. there are higher highs in the
oscillator and lower highs in price. The Bullish Hidden Divergence confirms, that price trend is up, i.e. there are lower
lows in the oscillator and higher lows in price.
Hidden and Regular Divergences are two opposite kinds of Divergence, but Hidden Divergences are more useful for
traders, because they can show him the exact entries in the direction of the trend. Hidden Divergences increase
trader’s chances of success, because they help traders to get into a prevailing trend. Moreover, Hidden Divergences
help traders to find the precise entry, stop and exit levels in a trend. You must admit that it is much more attractive
offer than an offer to use a risky investment strategy and try to
“catch a falling knife”. All traders know, that “the
trend is your friend”, so they will follow this simple, but useful rule.
Some traders may say that Hidden Divergences cause a so called
“Catapult” or “Rubber band” effect in a trend.
Here
is a simple example: if price makes a pull-back, the indicator will make a larger pull-back and stretch beyond the
mean; as a rule, the indicator should go back to its mean, and it reverts there, but with strong momentum;
meanwhile, price suddenly reverts to its initial trend, and it causes strong moves. If a trader can find the precise
entry to these moves, he will make a lot of money.
We can add possibility to show hidden (reverse) divergence for any our divergence indicator:
http://iticsoftware.com/hidden-divergence
Support and Resistance
Lines Support and resistance are terms used by technical traders to refer to specific price levels that have historically
prevented traders from pushing the price of currency in a certain direction.
Learn more....
