Divergence is a very popular concept in trading, it shows that a move in price isn’t backed by other alternative data sources, that alternative can be a technical indicator or a fundamental one, and when this happens it will be an early signal for a reversal on the price.
Traders use divergence in different ways, some only trade divergence setups between technical oscillators and price, they call themselves technical reversal traders, they look for divergence setups on price tops and bottoms, to find the reversal sign as early as possible and they are the ones who jump early in hope to ride the next trend from start to end, or at least get the most our of new trend.
Other traders use divergence for confirmation of their entry or exit signals, if you are a trend trader and you are on a trade that is in direction of trend and an opposite divergence signal appears it might be time to exit or tighten your stop.
There are different ways to use divergence for improving your trading, and for recognizing the divergence setups you must either do it manually or by using an automated tool like our divergence indicators.
This divergence indicator is able to find divergence between two data series, it doesn’t matter what those data series are, the series can be price or an indicator, the divergence indicator will be able to spot the setups and alert you, it has a rich alerting system that you can use to get alerted whenever there was a divergence setup between price and your favorite oscillators.
You can use any cTrader indicator as input data series of indicator and price open, high, low, and close series
Email, sound, and Telegram alert when a divergence setup formed
No repaint, it shows all divergence setups, for indicator it doesn’t matter its a good or bad setup