Divergence

In this episode we will be discussing the use of divergence as an additional factor you can use in your trading plans to give you more of a bias in the markets. We will start by discussing the ways that divergence actually works and how we can have both a continuation divergence and also a reversal divergence. We will then look into the RSI indicator which is what we will be using the measure our divergence on the charts. Once we understand the way in which we will be using the RSI for our divergence, we will take it to the live markets again and will draw up some clear trade examples of how the divergence works along with everything else that we have already learnt. It can be a great tool to use in areas of support and resistance and so it is important to really have a strong understanding of the best way to use it if you are going to add it into your trade plan in the future.