The essence of SMT Divergence lies in observing the relationship between the Dollar Index and foreign currencies, particularly focusing on whether their Jul 28, 2022 · We confirm a hidden bearish divergence when the price shows lower tops, and the indicator gives higher tops. The relative strength index, or RSI as it is known, is a momentum indicator that you can use with your technical analysis. Observe the price action: Look for higher highs or lower lows in the price. Hidden Bearish Divergence. En Trading, c’est la même chose ! La divergence y désigne généralement l’éloignement de deux tendances : celle du cours de l’actif étudié ; celle d’un indicateur Jun 3, 2018 · Divergence Trading. Ordinarily, the price and the indicator ISBN 0-934380-88-0 90000. In a bullish divergence situation, there must be an oversold condition on the RSI, followed by a higher low on the RSI graph. In conclusion, SMT Divergence is a technical analysis strategy that can potentially try help forex traders to identify trend reversals with higher accuracy. Buyers believe that the trend has recovered, or a new trend has begun and they want to make money. Sep 29, 2021 · Divergence generally means two things are moving apart while convergence implies that two forces are moving together. Bearish. Hidden In this grade, we will teach you how to spot these divergences and how to trade them. Compare with the indicator: Check if the indicator is confirming the price action. Divergence Table (Price and Oscillator) Price. com/rtcFREE30% Off Momo's Divergence Tr This strategy is pretty simple. Share your files easily with friends, family, and the world on dirzon. So if the prices are making a higher high and the indicator is making lower highs then it is an indication of bearish divergence in RSI. This bearish Pin Bar was a reasonable short entry. Bullish. The bullish divergence setups using the RSI and the MACD indicators are shown below. Price movement. Permet d'identifier des points potentiels de retournement sur les marchés financiers. This is called correlated pair divergence. Sometimes you can even use it as a signal for a trend to continue! There are TWO types of divergence: 1. ® PO Box 6206. So for example, if your RSI is set to 14, it compares the bullish candles and the bearish candles over the past 14 candles. Easy registratione. It is either the price is making a higher high when the indicator is making a lower high or vice versa. Identify the Trend: Before looking for divergence, it is crucial to determine the overall trend of the currency pair. How to Trade the Divergence Strategy – the 5 Golden Rules. Mar 25, 2024 · Divergence Trading Entry and Exit PDF This indicator works in full speed which helps MT4 to tells about 1 minute, 2 minutes trade and this trade turns into trading strategy platform. In the case of the 27-day exponential moving average, the smoothing constant would be 2/(26+1) = 2/27 = 0. The RSI compares the average gain and the average loss over a certain period. Learn how to trade divergences between price and momentum indicators with this free PDF and guide. Divergence signals are more reliable when they occur within the context of a well-established trend. RSI:. Language English. Désavantages du Divergence Trader. -. I Tested The Most Accurate Filter For Scalping, Swing Trading 100 Times ( Must Watch ! The correct way to use divergences “ The Power of Divergence ” is the second volume of the series “Trading with the Trendlines. There are two types of divergences: bullish and bearish. 2/7/2024. ISBN 9781541214361. In other words, the indicator does not agree with the price action. Apr 9, 2015 · The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. A negative divergence occurs when an asset’s price is in an uptrend while the indicator is moving lower. Convergence Divergence Trading Guide Oscillating indicators are to show securities when they are overbought or oversold allowing a trader to enter at the best possible price. It failed to do so. Smart Money Technique ( SMT ) Divergence is meant to annotate divergences between closely correlated assets. Jun 29, 2020 · Vladimir Ribakov. First up, let’s take a look at regular divergence. It means price and oscillator will move in the opposite direction. Whether you're a day trader or a long-term investor, divergence analysis can be adapted to your trading style. It compares both symbols' pivots and evaluates whether they indicate a valid divergence (based Sep 6, 2023 · Here are some steps to identify divergence: Identify the trend: The first step is to determine whether the market is in an uptrend or downtrend. and they can be Bullish or Bearish. 154. %D = 3-Day Simple Moving Average (SMA Divergence Trading - Free download as PDF File (. Nov 17, 2020 · A market convergence, divergence, and crossover were better identified with the help of the MACD histogram. Divergences work on all indicators, but my favorite by far is the RSI (Relative Strength Index). Popular YouTube videos relevant with Learn Foreign Currency Trading Online, Trading Tips, and MACD …. Adobe Acrobat Document 425. 1. Avoiding False Signals: Divergence can help filter out false signals and noise in the market. Indicator movement. Traders primarily use RSI to gauge market conditions that are either overbought (above 70) or oversold (below 30). This paper revisits the performance of the two trading rules in the stock markets of five other OECD countries. ) Below we have a reading that hit the 20 line on the RSI and was the low of the last 50 candles. 12 or 26), which we now review briefly: First, find the smoothing constant 2/(N+1). Greenville, SC 29606. Apr 21, 2023 · Conclusion. Types of Divergence. Step Two: When we find the 50 candle low, it needs to be coupled with RSI reading 20 or lower. The indicator consists of three main components: MACD Line: The The Moving Average Convergence Divergence (MACD) is a technical indicator used to identify new trends or momentum and show the connection between the price of two moving averages. A price divergence can be positive or negative. For this example, the oscillator will be the Relative Strength Index. It is a popular trading strategy used by traders to identify potential trend reversals and entry/exit points. Fire up a 1 hour chart of the EUR/USD or GBP/USD and add the following indicators: MACD (12, 26, 9) – This is the standard setting on most charting software. Trading for a Living offers this definition: A bullish divergence occurs when prices trace a bottom, rally, and then sink to a new low. Demande de la patience avant que le signal ne se produise. Bearish divergence. The trend accelerates as more buyers jump into the market. Hidden Bullish Divergence. Practice This Strategy. In the example above, we can see that correlated pair made a lower low, running its sellside liquidity below a previous low. Another great RSI divergence strategy includes the Stochastic Oscillator. While using divergence, traders and analysts can decide on whether or not they would like to exit the position or set a stop loss in the case the divergence is negative and prices begin to fall. It’s called hidden because it’s less obvious than the regular type. By using indicators such as the Stochastic Momentum Index (SMI), traders can spot divergences between price action and momentum, which can indicate potential trade setups. If you’re looking to elevate your trading game and achieve success in the financial markets, understanding the concept of divergence is an essential skill to master. Nimble traders would have seen them as warnings and scratched the trade. The price follows directly after to correct the May 27, 2024 · In this swing trading strategy, we will use it in order to make the entry and exit decisions. May 13, 2019 · Divergence Trading Pdf Books Some sort of bloke buyer explained “the phenomena has to be your acquaintance and you ought to deal in direction of that phenomena, with regard to you will find there’s serious Divergence. There are different types of m omentum oscillators a trader can use, and the MACD is one of the most popular. Momentum can be calculated by using the formula: M = CP - CPx. Jan 2, 2012 · The MACD indicator (or “oscillator”) is a collection of three time series calculated from historical price data, most often the closing price. This study aims to address this gap in knowledge by evaluating the Moving Average Convergence Divergence (MACD) as a tool of equity trading at the Karachi Stock Exchange. Dans le langage commun, on parle de divergence lorsque deux éléments s’éloignent l’un de l’autre. . Find out what divergences are, how to spot them, and how to use them for profitable trades. SMT sellside. Divergence Trading Strategy - Free download as PDF File (. In the world of economics, finance, and trading, divergence and convergence Qu’est-ce que la Divergence RSI La divergence en Trading. It measures the momentum of price movements and identifies trend directions over time. When traded correctly, it can mean that you get in a trade at the very best price. It must move up when the price is heading upward, and the oscillator must move down when the price is The figure above shows the majority of the time, the return from the daily trading at NEPSE shows the bearish trend (3279 days) with the indicator below the signal line. When you spot a regular bearish divergence, you expect the price to cancel its bullish move and switch to a downward movement. Rosillo, 2013; Terence Tai-Leung Chong, 2008; Ülkü and Prodan, 2013) uncover that moving average convergence divergence While there are two variants of the Stochastic Oscillator, the formula below is for the Fast Stochastic Oscillator [3]. Primarily because I understood divergence and the momentum play was based on divergence. 074. Look at the following scheme. Regular Bearish Divergence. Rule #1: It Only Exists in Four Different Price Scenarios. An interesting trading tool a person can use to help in making a trading decision involves finding divergence in the MACD Histogram (MACDH) oscillator in conjunction with a seasonal entry signal. Rosillo, 2013; Terence Tai-Leung Chong, 2008; Ülkü and Prodan, 2013) uncover that moving average convergence divergence (MACD) trading rules have As a trading concept, divergence is said to occur when the price action differs from the movement of your momentum indicator. (Bearish divergences are the reverse. Mar 13, 2023 · How to identify SMT. There were repeated congestions after the Pin Bar entry. This section introduces SMT Divergence and its application in analyzing market conditions. com/momo-njie - click here for full interviewGet Cam's FREE Trading Robot here: https://tradingnut. When it Feb 1, 2017 · Abstract. Apr 10, 2024 · Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Managing Risk with Divergence Trading. Since pair 2 is correlated to pair , we should also expect to see it run its sellside liquidity below its previous swing low. Rule #2: For Bearish Divergence, Only Connect Highs. Whilst there are different types of indicators you can use in your trading including ‘ Lagging, Leading and Confirming ‘ the MACD uses the difference between Apr 26, 2024 · The “hidden” principle behind divergence trading that no other textbook will tell you; A fool-proof technique that will help you master identifying all types of divergences in trading; Which indicator is the best for divergence trading (it’s not what you think) A complete and simple divergence trading strategy (including entries and exits) Apr 14, 2023 · The Moving Average Convergence Divergence, also known as MACD or MAC-D, is a momentum trading indicator that aims to identify changes in the trend momentum of financial assets. Publisher Jim Brown. There are TWO types of divergence: • Classic • Hidden Classic Divergence Regular divergence is the classic sense of divergence that occurs when the price action makes higher highs or lower lows while the oscillating indicator does not. The implication is that the price is losing momentum and is likely to reverse soon. 📣Connect with me on social media & Discord!📣 Socials / Affiliate Links: http://ttradesedu. John Hayden. Secondly, the RSI provides clear trading signals, particularly for short-term traders and those who use chart patterns to find trading signals. Bullish SMT Divergence: When a foreign currency forms a higher low while the dollar index fails to make a higher high, it suggests buying pressure in the foreign currency Using divergence trading can be useful in spotting a weakening trend or reversalin momentum. Rule #4: The Line Slope Hints to the Strength of the Divergence. The Complete Guide. hidden bearish and hidden bullish divergences for Foreign Exchange. Jul 9, 2020 · A divergence in an uptrend happens when price action makes a new higher high but the technical indicator used on the chart doesn’t. Have a look at the rules: Bullish. com/Discord: https://discord. Macd Divergence Trading PDF. Hidden Bullish Divergence PDF Dec 7, 2023 · Versatility: Divergence can be applied to various asset classes, timeframes, and trading strategies. Divergence Trading Explanation Feb 7, 2024 · The Ultimate Divergence Cheat Sheet. Understand the laws, principles and techniques developed by Richard Wyckoff to track and trade in harmony with the big money, represented today by investment banks, hedge funds, pension plans and other large institutions. While the price has registered lower lows, the Stochastic (our indicator of https://tradingnut. That is what everyone dreams An RSI divergence. Divergence is a signal of the forex market that occurs in an uptrend when the price action makes a new highest high trend in the forex market while an indicator chart used for trading does not. You can also use SMT divergence with correlated pairs and not just the USDX. High -> lower high. 533. Divergence type. Apr 18, 2022 · There are three types of divergence: bullish (positive), bearish (negative), and hidden. The RSI divergence strategy works well with price action rules: Enter the market on an RSI divergence + a price action signal. 2. Take a look at the two types of bullish divergences illustrated below. It was also the most visual for me to pick up. I will briefly explain what are hidden divergences and some of their core principles. At the same time, MACD-Histogram traces a different pattern. These three series are: the MACD series proper, the “signal” or “average” series, and the “divergence” series which is the difference between the two. The pertinent research question of the study is whether MACD is significant tool of equity trading at the Karachi Stock Exchange. Nov 30, 2023 · To master divergence trading, it is important to understand the key steps involved in the process: 1. We measure the distance between people with positive and negative sentiment on a daily Feb 18, 2023 · Feb 18, 2023. Pelajari mereka, ingat mereka (atau silahkan terus datang ke sini jika lupa), gunakan mereka untuk membantu Anda membuat keputusan perdagangan yang lebih baik. Traders can find the RSI indicator on any platform or charting software and add it as a sub-chart. #1 Revisiting the RSI. This shows that only 34. In this guide we are going to concentrate on the MACD Oct 9, 2019 · A divergence suggests that the current price trend is showing signs of weakening and may cause the price to change direction. Feb 24, 2024 · The Moving Average Convergence Divergence (MACD) is a dynamic indicator in the forex trading world. It mainly develops when the indicator is moving in the opposite direction to the price. June 29, 2020. etc. High -> higher high. Tidak peduli apa indikator yang yang anda gunakan. 1 KB. A positive divergence is an indication that the price of an asset may move up, while a negative Chong and Ng (2008) find that the Moving Average Convergence-Divergence (MACD) and Relative Strength Index (RSI) rules can generate excess return in the London Stock Exchange. Rule #3: For Bullish Divergence, Only Connect Lows. It is found that the MACD (12,26,0) and RSI (21,50) rules The Moving Average Convergence Divergence (MACD) indicator is one of the popular technical indicators that are widely used in different strategies. In the case of the 12-day exponential moving average, the smoothing constant would be 2/(12+1) = 2/13 = 0. Stochastic (%K9, %D3, Slowing 3) – This one may require you to change the setting of the %K. The Oscillator must follow the path of price because it uses the price to calculate its value. pdf. SMT divergence confirms Judas Swings. Investments & Securities. Use practical tools to apply this timeless methodology; by learning to “read the market Feb 10, 2024 · In trading, divergence means is a signal produced by momentum indicators or oscillators, which shows that the price and the indicator are no longer in phase. Apr 13, 2023 · Hidden divergence provides weaker signals but is also used in trading. Nah coba tebak? Ada cara! car a! Ini disebut dis ebut Divergence Trading Singkatnya, perbedaan dapat dilihat dengan membandingkan membandingkan tindakan harga dan pergerakan indikator pergerakan indikator . Feb 5, 2024 · Cumulative delta divergence is a critical concept in trading, particularly in the realm of order flow analysis. Where CP is the closing price and CPx is the closing price "x" number of Apr 8, 2024 · In trading, divergence means that the price swings and the indicator movement are not in phase. You can use RSI, Stochastic, MACD, CCI, etc. In order to verify the MACD effectiveness, in this thesis, I use the MACD indicator with traditional parameters (12, 26, 9) to build various trading strategies. However, there are signs that the downtrend will be coming to an end. You just need to make sure that you know how to identify hidden divergence. Trading with SMT Divergence. 5 hours each. The bullish divergence RSI setup shows two troughs in the RSI indicator window forming higher lows while the price shows lower lows. Once we see that we had a low the last 50 candles AND the RSI is BELOW 20 then RSI DIVERGENCE CHEAT SHEET HIDDEN PRICE INDICATOR LOWER LOW LOWER LOW PRICE INDICATOR MEDIUM EQUAL LOW LOW EQUAL HIGH LOWER LOW WEAK LOWER LOW EQUAL HIGH EQUAL HIGH Get your free access today and join our trading room The information provided within this PDF is for educational purposes only. While you can use the RSI by itself in your trading, you can also use it to find and trade divergence. The great thing about divergences is that you can use them as a leading indicator and after some practice, it’s Feb 7, 2024 · The moving average convergence divergence (MACD) is an oscillator that combines two exponential moving averages (EMA)—the 26-period and the 12-period—to indicate the momentum of a bullish or Investment Management and Financial Innovations, Volume 13, Issue 2, 2016 Nguyen Hoang Hung (Vietnam) Various moving average convergence divergence trading strategies: a comparison Abstract Some studies published recently (Dejan Eric, 2009; R. Author. Classic divergences are part of a reversal trading strategy. Traders Press, Inc. A divergence signal is generated when the price is making a higher swing high but the indicator is making a lower high, or the price is making a lower swing low when the indicator is making a higher swing low, thus indicating a potential divergence trading strategy. I have added some of the most popular swing trading indicators as a guide for you to explore. Divergence “The Power of Divergence” is the second volume of the series “Trading with the Trendlines. 1. Therefore, other values can be substituted according to one’s trading style and goals in Aturan Trading Divergence Berikut adalah sembilan aturan keren trading dengan menggunakan teknik divergence. Anes Bukhdir. Typically, when the indicator value is between 70-80 or 20-30, you Jan 11, 2024 · RSI has fixed boundaries with values ranging from 0 to 100. Hidden divergences point to continuation trades. 80934380881. pdf), Text File (. Feb 29, 2024 · Below are different types of trading divergences: 1. By mastering RSI divergence, you can gain an edge in the Forex market and potentially improve your trading performance. Common charting software like Metatrader defaults it to %K12. May 21, 2023 · SMT Divergence in Correlated Pairs. This method can also be used with any other financial instrument that your MT4, MT5 or TradingView platform offers. Divergence refers to a powerful trading signal that can provide valuable insights into market trends and potential Chapter I: Divergence and market psychology. You’ll notice that there are recurring, similar patterns that are associated with divergences when you trade with them. Below is a daily chart of USD/CHF. At its core, MACD uses a pair of moving averages and analyzes the difference between them. Read Trading Forex with Divergence on MT4/MT5 & TradingView by Jim Brown with a free trial. When trading you want the USDX and currency pairs to confirm each other, otherwise it is a sucker play. Best vids about Free Forex Course, Forex Trend Analysis, and Multi Time Frame Macd …. 9. As with any trading strategy, risk management is crucial when trading divergence. This deviation occurs when there is a difference between the cumulative volume delta chart and the candlestick chart of the same financial asset. If a divergence is signaled, it can be a high probability of a price 075 MACDTM LINES 11 MACDTM line 15 075 combination 200 EXP AUG 21 BAR MOV 22 11 combination 22 exponential average 5-MINUTE TICK CHART 500 MACDTM LINES advance advance-decline line AUG CLOSE Average Convergence-Divergence Trading bear market bearish buy and sell buy side buy signal chart above shows compute Convergence-Divergence Trading Method Critical level DAILY GLOBAL day trading derive a Divergence refers to the disagreement between price and the oscillator. By observing these divergences, traders can forecast significant trend reversals in the Finally, the hidden divergence signal materialized as the RSI made a higher high. RSI Divergence Cheat Sheet and PDF Guide. Eleven scrips from different sectors on the . Conversely, positive divergence happens when the price is in a downtrend, but the oscillator is moving higher. This indicator works by finding local lows and highs for both the current chart symbol and the symbol defined in the settings. This indicates a weakness in the price action and a nearly warning that the trend could be coming to an end. In this article, we will dive into the fundamental How to Trade a Regular Divergence. txt) or read online for free. Double button and single button has great strategies to make money and through this we are capable to see follies of trader, trader works according to function Mar 20, 2024 · A bearish divergence consists of an overbought RSI reading, followed by lower high on RSI. divergence trading. Oct 4, 2022 · Divergence signals that the current price trend is weakening and that a reversal may ensue. 0. We can see from the falling trend line that USD/CHF has been in a downtrend. Aug 21, 2020 · This book will use the same principles in Jim’s very popular book, MT4/5 & TradingView High Probability Forex Trading Method, but it is a stand-alone book and concentrates more on trading with Divergence. It can happen between the price of an asset and almost any indicator. The MACD indicator is calculated by subtracting a long-term exponential moving average of 26 periods from a short-term exponential moving average of 12 periods. Price action (PA This study analyzes the performance of a MACD trading strategy, which is applied popularly by practitioners, but was not tested by prior academicians, and finds that the MACD-4 trading strategy has predictive ability. Divergences can be spotted in several Oscillators, such as RSI, StochRSI, MACD, CCI, OBV, etc. The great thing about divergences is that you can use them as a leading indicator and after some practice, it’s Volume and Divergence, A Trader's Bread and Butter by Gail Mercer Page 2 I watched their entire series on Cumulative Delta Volume Analysis. Refer to the chart below for easy distinctions between them and read about each in more depth underneath. At the same time, price must make a higher high on the second peak, where the RSI is lower. But as you can see, the bear trend failed to resume. ” The book explains a strategy applicable in every market (forex, equities, commodity), and it is a combination of divergence, trendline, and a little of Fibonacci; a simple strategy that seeks to exploit the reversal of a market. As you already know, the price moves in up and down swings (waves) — the same as your momentum indicators. Some studies published recently (Dejan Eric, 2009; R. The empirical study of the US equity mutual-fund market shows that fund managers adjust the risk they take depending on the relative position within their fund family, and the direction of the adjustment depends on the competitive situation in that family. Feb 11, 2022 · RSI divergence is a powerful tool that allows traders to identify potential trend reversals, spot overbought or oversold conditions, and make well-timed trading decisions. 15 Live Sessions. (If it’s a high it needs to be coupled with the RSI reading 80 or higher. It measures the speed and magnitude of price movements, presenting its findings on a scale from 0 to 100. Release date Mar 24, 2017. So they open long positions and drive the price higher. However, all signals generated by the MACD indicator depend on the three parameter values. MACD stands for Moving Average Convergence and Divergence. pdf) or read online for free. A bullish divergence is the first thing we will notice. Oct 18, 2023 · Therefore, the four types of divergences are summarized as: Regular Bullish Divergence. Regular 2. By understanding these divergences and interpreting the underlying sentiment, traders can identify potential entry points for profitable trades. Forex divergence is a technical analysis tool used to identify the discrepancy between the price action and the oscillator indicator. C'est un trading de qualité et non de quantité. Divergence is most often used to track and analyze the momentum in an asset’s price and the odds of a price reversal within the current trend. ” The e-Book explains a strategy applicable in every market (forex, equities, commodity), and it is a combination of divergence, trendline, and a little of Fibonacci; a simple strategy that seeks to exploit the reversal of a market. Feb 26, 2022 · Divergence in trading refers to the deviation of price and oscillator from a path. I. Divergence is basically price action measured in relationship to an oscillator indicator. It’s called divergence trading. Le trader est obligé d'être discipliné, car le signal est précis et étudier à l'avance. Place a stop loss order at the opposite side of the reversal point. When the price forms higher lows, but the indicator sets lower lows, the market may rise soon. For brevity, let’s call exponential May 9, 2019 · Understanding Divergences for Crypto Trading. As it has two plotted lines, %K and %D, the formula to calculate these two data points are as follows: %K = (CloseCurrent Period – Lowest Lown) ÷ (Highest Highn – Lowest Lown) * 100. Divergence warns that the current Mar 25, 2024 · A divergence cheat sheet is a forex trading sheet which tells about the trend patterns of the divergence in the forex market. The regular divergence pattern is used to forecast an upcoming price reversal. In this e-book, I will break down “Hidden Divergence,” one of the hottest day trading subjects revolving around real trend trading. 74 percent of the trading days during the sample period saw the bullish trend at NEPSE, and the remaining days were seen following the bearish trend. Read millions of eBooks and audiobooks on the web, iPad, iPhone and Android. ) For our review, we will be using MACD, but the same 125# Simple Divergence Trading; 126# Momentum Trading Signals; 127# CCI, Dema and RSX System5. Nov 30, 2023 · Similarly, if regular bullish divergence is identified, traders can wait for the price to break above a key resistance level or a bullish candlestick pattern to confirm the reversal. Jun 13, 2022 · Online file sharing and storage - 10 GB free web space. MACDH is a histogram display of the difference between two moving averages. The application that I was most attracted to was the momentum play. 5. The paper found that the Nepse return was stable for a very minimal period from 1998-99 Jan 16, 2021 · represented—in those times when the work week consisted of 6 days, not 5 days—2 trading weeks, 1 trading month, and one and a half trading weeks, respectively. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions. A divergence happens during a downtrend when price action makes a new lower low, but the technical indicator used on the chart doesn’t. Chart Setup. Trend strength. This paper introduces the concept of divergence of sentiment to the behavioral finance literature. The chart below gives a quick overview on the above 4-types of divergences. Download. Hold the trade as long as the price action continues to confirm your trade. gg/ttrades-commu find a divergence, first look at the pattern of an indicator and later at the pattern of prices. Feb 10, 2024 · The Relative Strength Index (RSI) stands as a pivotal momentum oscillator in the forex trading realm. Apr 18, 2024 · At first, it is very simple to use. Additionally, we will cover one of the trading strategies I employ while trading Mar 15, 2024 · Definition and Types. It doesn't really matter what type of oscillator you use. In this post, we go through exactly what the RSI is, how to trade it, and find How to Use Hidden Divergence. The RSI, therefore, leads the price action and is pointing in the new direction. Jan 1, 2024 · The concept of SMT ( Smart Money Technique) Divergence plays a pivotal role in Forex trading. See below for an example of Bullish Regular Divergence (which we’ll discuss in detail in a future article): It can be very protable to nd divergences because they are often indicative of the top or bottom of a trend. acuamtsalucrldfkpawt