Divergence Convergence in PFOREX Assist
Eighty Fifth session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- The situations of Divergence/Convergence
- The Divergence/Convergence strategy examples in PFOREX Assist
Divergence Convergence in PFOREX Assist
Divergence/Convergence strategy is applied to deliver the technical analysis on all symbols and time-frames. PFOREX Assist also applies the Awesome Oscillator to detect the Hidden Divergence (Bullish & Bearish) as the confirmation in this strategy.
PFOREX Assist detects the Divergence & Convergence by the use of Relative Strength Index, known as RSI, in which indicator values are in overbought/oversold conditions for the highest possible quality. All the peaks and valleys that are used for detecting the Divergences and Convergences are in overbought or oversold areas.
Complete and reliable courses are available in our education section, hence traders can study text or video courses to develop their knowledge about Divergence/Convergence as well as Hidden Divergence.
Now we can check some examples of generated analysis for further information and review.
On downward trend while the RSI shows the oversold condition, the last valley is lower than the previous valley. Despite of that, on the equivalent spots, RSI last valley is higher than the previous valley. This indicates a reliable convergence condition. It is speculated that price may rise after more confirmations to detect the Entry and Exit prices.
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The next example shows 2 consecutive convergence conditions on a bearish trend of Gold price. Comparing the valleys shows decreasing direction in which the latter valley is lower than the previous one. Despite of the decreasing course on price chart, RSI shows ascending trend in the equivalent valleys. The convergences confirm the future bullish trend, so traders can apply other confirmations for a buy order.
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The 3rd example is on EURJPY upward trend, where there are two peaks that shows a divergence. The equivalent spots on RSI indicator are in the overbought area and the last peak is lower than the previous peak hence the divergence shows the less tendency for the bullish trend. A hidden bearish divergence by AO, the abbreviation of Awesome Oscillator, also confirms the bearish future trend.
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Finally the last example shows 2 successive divergences on a bullish trend. The latter peaks on price chart has higher value rather than the previous peaks while the RSI indicator shows that the equivalent spots has lower value. This leads to two continuous divergences. On the last peak, a Dark Cloud candlestick pattern confirms the Sell order.
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Notices
The Divergence/Convergence strategy helps traders to find the reversal area where a new trend direction is speculated with the help other confirmations. The Hidden Bullish/Bearish Divergence can be a good confirmation for this strategy.
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.