Forex Trading Strategies Using Divergence
POSTED BY Annabel on Apr 21 under Forex Trading Strategies, Forex Trading System, Forex Trading Tips, Forex Trading Training
Can Diverging Charts Give You A Higher Probability When Trading The Forex ?
We have seen a fair amount of divergence recently on the charts but does it making the right Forex trading decision easier? Well it gives you forwarning that the current trend is about to end and potentially reverse. You can then add your standard entry criteria to maximise your Forex trade.
Take a look at the Forex chart below:
Divergence on the Forex chart of GBP/USD. In the above example both RSI and Stochastics indicate the upward trend is about to come to an end with an imminent price reversal. Price continued to rise with higher highs but RSI and Stochastics indicated lower highs.
With this in mind, when trading the Forex market we can look for an entry point in anticipation of a trend reversal and a good move in the opposite direction.
If you want to find out the exact details about trading the types of set ups then you can easily grab your copy of some great trading tips, books and courses here - www.tradeforexfromhome.com
Good trading and best wishes
Annabel
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GBP really going struggle now because of hung parlaiment