2016-03-10_21-42-44eursek

Hello all,

Today I want to show on the eursek daily chart how you can spot divergence.

In this case it is a bullish divergence if we use the stochastik indicator.

Some traders use this as confluence meaning you have a bullish engulfing candle, price bounced of support and the stochstik indicator moves inverse compared to price.

This can be seen with a lower price and with a higher high on the stochastik indicator as indicated with the arrows.

If you like and manage to easily identify divergence then youy might use it in your trading tools and decision making process.

BEST OF PIPS

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