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Saturday, January 12, 2008 |
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Forex Trading - Types of Divergence
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Type
of Divergence |
Identification |
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PROVIDED BY HTTP://WWW.FOREXPROJECT.COM |
Classic Bearish |
HH price
LH indicator |
Indicates
underlying weakness
Warning of a possible short- to intermediate-term change
in trend from up to down |
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Classic Bullish |
LL price
HL indicator |
Indicates
underlying strength
Warning of a possible short- to intermediate-term change
in trend from down to up |
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Bearish Hidden |
LH price
HH indicator |
Indicates underlying weakness
Mainly found during corrective
rallies in a downtrend
May also occur during retests of a price top |
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Bullish Hidden |
HL price
LL indicator |
Indicates underlying
strength
Good entry or re-entry
Occurs mainly during corrective
declines in an uptrend
May be found on occasion at price retests of the lows |
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*HH=Higher High
*LH=Lower High
*LL=Lower Low
*HL=Higher Low
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