divergence set up - some basic learningwhat is Divergence ? 👇
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction
what is Oscillator ? 👇
An oscillator is a technical analysis tool that constructs high and low bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions.
how is Oscillator used in Trading ? 👇
Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets. Most traders use multiple oscillators to confirm range extremes and for determining the important entry and exit points.
🛑Indicators for spotting the divergence indicator patterns are the Awesome Oscillator, macd, the RSI, CCI or stochastic.🛑
disclaimer - personal view (can be wrong)
