Как выглядит дивергенция в трейдинге
Divergence is a term used in trading to describe when the price of a financial asset and an indicator are heading in opposite directions. In this article, we will discuss how divergence looks in trading, how to spot it, what happens during divergence, and how to identify it in your trading charts.
- What is Divergence in Trading
- How does Divergence Look in Trading
- How to Spot Divergence in Trading
- What Happens During Divergence in Trading
- How to Identify Divergence in Trading
- Tips for Trading Divergence
What is Divergence in Trading
Divergence occurs when a financial asset's price and an indicator’s value start to move in opposite directions. For example, if the underlying asset's price is rising, but the indicator value is falling, this would be a bearish divergence. Conversely, if the asset's price is falling, but the indicator value is rising, this would be a bullish divergence. Divergence can be seen as a warning sign that the trend may be losing its momentum.
How does Divergence Look in Trading
The classic bearish divergence appears as two or more consecutive highs on a price chart with each subsequent high being higher than the previous one. At the same time, the same number of highs is formed on the oscillator chart. However, the highs on the oscillator chart are lower than the previous ones. The bullish divergence is the opposite, with lower lows being formed on the oscillator chart while the price chart forms higher lows.
How to Spot Divergence in Trading
To spot divergence, traders need to compare identical time periods between the price and oscillator charts. Look for two local highs that are moving in opposite directions. If the second local high on the price chart is higher than the first, but the oscillator chart shows a lower high, then it's a divergence signal.
What Happens During Divergence in Trading
During divergence, there is a difference in movement between the price of the asset and its related indicator, which often signals that the market trend is losing momentum. When divergences occur, it usually means that a trend reversal may be imminent. This is because the technical indicator shows the momentum change while the price hasn’t yet reflected the shift.
How to Identify Divergence in Trading
Identifying divergence in trading is simple and usually involves comparing two or more peaks/troughs on price and indicator charts. In general, you need at least two ascending peaks on the price chart, and two descending peaks on the oscillator chart. You can identify it visually because the peaks/troughs will show a different rate of change on the two charts, making them diverge.
Tips for Trading Divergence
Here are some tips for trading divergence effectively:
- Always find confirmation of divergence signals with another technical indicator or price action confirmation.
- Only trade divergence when it occurs on a significant price level, such as a support or resistance zone.
- Use divergence signals to complement your trading strategy, not as the primary signal.
- Do not rely solely on divergence, as it can be a lagging indicator.
In conclusion, divergence is a popular technical tool used in trading to identify potential market reversals. If used correctly, it can provide reliable and high-probability trading signals. However, it's essential to note that it's only one of many tools that successful traders use and should never be used as the sole indicator for trading decisions.
