Trading strategy with divergence for stock market
Wonder What a expert Trader sees in the 2008 crisis and Covid 19 crisis. He sees the divergence in the chart of Nifty50. When others were losing money in the crash an expert trader was making profit with the divergence trading strategy. If you look at the chart of Nifty50 back in 2008 and 2020 when prices start dropping you can easily spot a divergence with the help of RSI. So What does divergence trading mean? Divergence trading is a most known and profit making strategy of technical analysis. Divergence occurs when the price of a stock moves in the opposite direction of the technical indicator basically oscillator (mostly uses RSI and MACD). Divergence is a warning about the future event in price. It tells that the current trend in price has started getting weak and a reversal of the trend may start. Does Divergence trading work? Yes, Divergence trading works and is one of the most profitable trading te...