Forex Divergence trading strategy: indicators: rsi, macd, moving average

Divergence Forex Indicators

More than 30 Forex divergence indicators. My collection of the best assistants for trading. Indeed, there are worthwhile/valuable specimens that will increase the accuracy of entry of opening orders.

Price - 15 USD

E-mail: sashaeur@gmail.com

Using the moving average convergence divergence MACD indicator and its trading signals.

This program is most effective when there are significant market fluctuations in the trading corridor. The most commonly used MACD signals are its line crossovers, overbought/oversold conditions, and digression.

The main rule of trading using MACD is based on the indicator's intersections with its signal line. When the Moving Average Convergence and Divergence falls below the signal line, you should open short positions. When it rises above the signal line, go long. A signal to buy or sell is also the MACD crossing the zero line up or down.

A fairly confident determination of the overbought/oversold state by the MACD indicator is also highly valued. If the short moving average is above the long moving average (MACD is rising), this means that the price may be overvalued and will soon return to a more realistic level.

If a discrepancy (slanting) appears between the indicator and the price, this indicates an imminent trend change. Bullish divergence occurs when the price reaches new highs and the indicator fails to keep up. Bearish - if the price reaches new lows, but the MACD does not. These discrepancies become especially significant in overbought/oversold zones.

A short analysis of another of the best divergence indicators - Stochastic oscillator

Divergence is one of the most powerful signals of any indicator. It is formed when the directions of the lines that connect certain bottoms and tops on the chart and the Stochastic Oscillator variation in opposite directions.

Bullish divergence occurs when the minimum extremes on the chart continue downward, but the oscillator is building the last depression above the previous one. Consequently, the band that connects the bottoms on the chart has a top-down direction, and the line that connects the minimum extrema of the Stochastic already has a bottom-up direction.

Bearish divergence occurs in the opposite way: on the chart there is a continuation of the construction of the highest peaks, but on Stochastic the latter lines up under the previous one.

By the direction of the line connecting the minimum or maximum extrema of stochastic oscillator deflexure, you can determine the direction of opening a transaction.