Bullish and bearish divergence

Divergence is a crucial concept in forex trading that helps traders spot potential trend reversals or continuations. Divergence occurs when the price of an asset moves in one direction while a technical indicator moves in another, revealing hidden market strength or weakness. Among the various types of divergence, hidden bullish divergence stands out. This article explores hidden bullish divergence, its significance, how to identify it, and strategies to trade effectively using this potent signal.

In the ever-evolving domain of forex trading, chart patterns serve as a distinctive language, articulating insights into market sentiment and potential future price trajectories. These patterns act as imprints left behind by market participants, revealing recurring formations that traders and analysts decipher to make well-informed decisions.

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 Divergence is a strong signal in forex, trading which can show the upcoming market changes. At the least, divergence signals can indicate a correction. At most, they can signal a market reversal. When a trader sees the divergence signs, it means they should get ready for placing sell orders.