Skip to main content

Regular Divergence

Regular divergence

Regular divergences are reversal patterns. Divergences are formed when price and a momentum indicator moves in different directions. Normally I use RSI to find divergences. But MACD, Stochastic etc also give good signals for trading. These pattern gives a signal before reversal starts. Probability of reversal increases in higher time frames. 

There are two types of regular divergence. 
  • Regular bullish divergence
  • Regular bearish divergence

Regular bullish divergence

Regular bullish divergences are seen at end of a down trend. Here a divergence between price and momentum indicator can be seen. Price forms a lower low. But indicator forms a higher low.
Regular bullish divergence

In the image above you can see price made a lower low, but rsi was forming a higher low. Soon price trend reversed.

Regular bearish divergence

Regular bearish divergences are seen at end of an up trend. Here a divergence between price and momentum indicator can be seen. Price forms a higher high.. But indicator forms a lower high.
Regular bearish divergence
In the above image you can see even though price made a higher high momentum indicator RSI made a lower high. Soon price reversed from its uptrend.

You can see below video from our channel share market malayalam for more info.





Check post about hidden divergence here : Hidden Divergence


Popular posts from this blog

Upstox Pro discount broker All you want to know

Upstox Pro Upstox is a leading discount broker in India and one of the fastest growing discount broker. Ratan Tata invested in this company a few years ago. Recently Tiger global invested 25 million in upstox. It is growing fast with cutting edge technology and low brokerage and gaining market share. Upstox added 1 lakh clients in December month 2020 only. They are providing some of the best trading platforms for traders and investors and making it better with frequent updates. Upstox pro is upstox web trading platform.
How to open demat account in upstox or upstox account opening process To trade in share market or commodity or currency market, you need a trading account. To buy and hold a share in share market you need a demat account also. You can easily open your trading and demat account with upstox by filling their account opening form. Link is given below. 
Upstox account opening process is completely online and you can open trading and demat account in a few minutes by going t…

Fyers Account opening to trading platform review

FYERS All you want to know Fyers is one of the youngest discount broker in India found by 3 brothers. FYERS word is acronym for Focus Your Energy and Reform Yourself.
Fyers is a Bangalore based company. Their aim is to provide best technology platforms to traders in India. I think they succeeded in it to a point. They have one of the best platforms for web, desktop and mobile. We will discuss about fyers trading platforms in detail later.
Here we discuss few things about this discount broker, ranging from account opening process, trading platform, brokerage and thematic investing.
Fyers account opening process Fyers account opening process is completely online. You can open trading and demat account online by filling online account opening form in this link : Fyers

Form filling is a simple process. You can refer this video to fill fyers account opening form.


Documents needed for account openingPAN Card (Mandatory)ID Proof - Voter ID, Aadhar card.Address Proof - Passpo…

Commodity trading in India

COMMODITY TRADING IN INDIA WITH MALAYALAM VIDEO You can find commodity trading malayalam videos below this post from our youtube channel  Share Market Malayalam.  Commodity trading in India may not be as popular as stock market trading in India. Its gaining popularity in India now and a lot  people started trading in mcx commodities now. Here we discuss some basic things related to commodity trading and commodity market in India.  Forward contracts of commodities are traded in commodity exchanges. Future and options segment is highly leveraged trading intruments and a beginner should first learn and then only trade in commodities. A lot of beginners in trading gamble in commodities like crude oil and lose money. Some go for tips. But that is not a permanent solution. Learning to trade is always better than going behind tips for commodity trading. To be successful in trading, you need to learn technical analysis and develop other skills also which are needed for a trader to be successf…