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Pip Divergence

A Divergence is basically the currency is going up but the stockastic is going down and vice versa. The price will eventually go in the direction of the stockhastic.
• Use Parabolic sar for timing entry and exit.
• Works with all time frame
• Stochastic should preferably be either at support or resistence
Divergence is basically price action measured in relationship to an oscillator indicator. It doesn't really matter what type of oscillator you use. You can use RSI, Stochastic, MACD, etc. The great thing about divergences is that you can use them as a leading indicator.
• Since you are buying near the top or selling at the top, your trade risk is less.
• Divergence act as an early sign to tell you that the market could reverse.
• Divergences act as only an indicator not for entry or exit.It is not 100% foolproof!
• Use other indicators to confirm your findings.
Divrgence trading with stochastic

Divrgence trading with stochastic

Divrgence trading with stochastic

Divrgence trading with stochastic

Divrgence trading with stochastic

Pip divergence

Pip divergence

Pip Divergence Reviewed by learn forex trading on June 02, 2017 Rating: 5

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