Flashcards in High School Deck (14)
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1
Using divergence trading can be useful in spotting a?
weakening trend or reversal in momentum.
2
What are TWO types of divergence:
Regular and Hidden.
3
What is a regular divergence?
A regular divergence is used as a possible sign for a trend reversal.
4
What are two types of regular divergences:
bullish and bearish.
5
If price is making lower lows (LL), but the oscillator is making higher lows (HL), this is considered to be?
regular bullish divergence. This normally occurs at the end of a DOWNTREND.
6
In a Regular Bullish Divergence after establishing a second bottom, if the oscillator fails to make a new low, it is likely that?
the price will rise, as price and momentum are normally expected to move in line with each other.
7
In a Regular Bearish Divergence f the price is making a higher high (HH), but the oscillator is lower high (LH), then you have?
a regular bearish divergence. This type of divergence can be found in an UPTREND. After price makes that second high, if the oscillator makes a lower high, then you can probably expect price to reverse and drop.
8
The regular divergence is best used when trying to pick
tops and bottoms.
9
What’s a hidden divergence?
Hidden bullish divergence happens 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.
10
In a Hidden Bullish Divergence Once price makes a higher low (HL), look and see if the oscillator does the same. If it doesn’t and makes a lower low (LL), then?
we’ve got some hidden divergence in our hands.
11
What is Hidden Bearish Divergence?
This occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH).
12
Regular divergences = signal possible?
trend reversal.
13
Hidden divergences = signal possible?
trend continuation.
14
