Regular Divergence

Question 1

What is regular divergence used for?

Answer 1

It is used as a possible sign for a trend reversal.

Question 2

What are the two types of regular divergence?

Answer 2

Regular Bullish and Regular Bearish.

Question 3

What is Regular Bullish Divergence?

Answer 3

When price makes lower lows (LL) but the oscillator makes higher lows (HL).

Question 4

When does Regular Bullish Divergence normally occur?

Answer 4

At the end of a downtrend.

Question 5

What is the expected price movement after establishing a regular bullish divergence?

Answer 5

The price is likely to rise as momentum shifts.

Question 6

What is Regular Bearish Divergence?

Answer 6

When price makes a higher high (HH) but the oscillator makes a lower high (LH).

Question 7

In what market condition is Regular Bearish Divergence found?

Answer 7

In an uptrend.

Question 8

What does the oscillator signal during regular divergence?

Answer 8

That momentum is starting to shift and the price move may not be sustained.

Question 9

What is regular divergence best used for?

Answer 9

Picking tops and bottoms (identifying areas where price will stop and reverse).