3 Different Powerful Types of Divergence!
There are three different types of ‘divergence.’ The most commonly known divergence is what they call ‘Regular Divergence.’ Why you might ask? Because it’s the most popular divergence out of the three?
And because its the easiest to spot on a trading chart. Divergence is a technical powerful chart pattern that a trader looks for on his price charts. And before they learn how to spot the hardest ‘divergence setup’ they first need to be able to spot the easy divergence setups.
Most Traders Want Some Pie In The Sky Indicator To Tell Them When To Buy Or Sell!
You see, a lot of traders want some pie in the sky indicator to tell them how to win on every trade they take. It’s like they are looking for a simple system that doesn’t require any thinking. Like a green arrow that pops up on there chart that says buy now. Or a red arrow that says sell now! You know: “The Holy Grail!” Which does not exist. If it did. We all would be rich now wouldn’t we?
The first powerful type of divergence we will go over will the be: Regular Divergence in which we look to buy when we see a low followed by a lower low. And a higher low on your indicator of choice. But before I get ahead of myself. I want to list all 3 types of ‘divergence.’
Whew! Okay… now I can show you all the powerful types of divergence:
Regular Bull Divergence:
Regular Bear Divergence:
I changed the name to something I could remember easier to reference by. So I hope you’ll be able to see my way of naming the three different divergence setups.
Double Bottom Bull Divergence:
Double Top Bear Divergence:
Hidden Bull Divergence:
Hidden Bear Divergence:
Well there you go. Not much to it right? Above they look quite easy to spot compared to some complicated Harmonic Gartley Pattern. But the regular divergence and the double top/bottom divergence are the easiest to spot and learn how to trade them. The ‘Hidden Divergence’ on the other hand can be very difficult to spot at first.
To Learn How To Spot Hidden Divergence It Took Me Years To Master It!
I myself learned how to spot the first 2 within a few days to a week. The hidden divergence mind you took me years to finally get it. There are some people who never can spot it no matter how much you train them. No matter how much chart starring time they put in.
Some traders have gone on to tell me that you need to be artistic to be able to see some of these technical price patters known as “Divergence!” I say if you want it bad enough you can accomplish anything you want in your life…
So whatever you do – Never Ever Give Up!