Definition:
When price is making a higher low (HL), but the oscillator is showing a lower low (LL). This can be seen when the pair is in an UPTREND. Here the main indicator that I used for this specific chart is stochastic RSI. Other oscillators such as CCI , RSI , Volume oscillator, MACD etc can be helpful too. In short best thing about using divergences is that you’re usually buying near the bottom or selling near the top.
Good luck and happy trading.
When price is making a higher low (HL), but the oscillator is showing a lower low (LL). This can be seen when the pair is in an UPTREND. Here the main indicator that I used for this specific chart is stochastic RSI. Other oscillators such as CCI , RSI , Volume oscillator, MACD etc can be helpful too. In short best thing about using divergences is that you’re usually buying near the bottom or selling near the top.
Good luck and happy trading.