Trading Price Oscillator Divergences Can Increase Your Chances Of Making Winning Trades

Trading Strategy

Trading divergence patterns is not a complete trading strategy rather it is an additional tool in the technical trading toolkit of any trader. Divergence is simply the disagreement between the price action and the indicator movement.

Now any oscillator can be used to show divergence patterns. The most commonly used oscillators include RSI, Stochastics, MACD, CCI, ROC and Williams %R. However, any oscillator can show divergence with price action.

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