Forex Divergence Strategy
Currency Strength Meter Team
Forex Analyst & Writer
Introduction
When price and momentum disagree, something interesting is brewing.
That’s the essence of divergence — and it’s a subtle clue used by experienced traders worldwide.
See divergence cheat sheets at www.currencystrengthsmeters.com.
Types of Divergence
- Regular Divergence: Predicts reversal.
- Hidden Divergence: Suggests trend continuation.
Example: If EUR/USD makes a new high but RSI fails to do the same, momentum is fading — a potential short trigger if strength confirms.
Strength Meter + Divergence Combo
The meter tells you which side is strong.
If divergence appears against that strength, expect minor pullbacks, not full reversals.
If both align, that’s your green light.
Key Tip
Always confirm divergence on at least two timeframes.
Noise on a single chart can mislead you; context prevents confusion.
Explained by CurrencyStrengthsMeters.com — blending structure, momentum, and logic.
🔹 Key Takeaways
- Use strength meters to spot strong/weak pairs quickly.
- Combine with price action for accurate entries.
- Stay aware of major economic events.
💬 Comments
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