Free Forex Lessons

The divergence indicator is a powerful tool that helps traders understand the market sentiments and forecast the change in trend line of the price of a particular security. It also presents a deeper understanding about the relation price has with different indicators like MACD, stochastic, relative strength index (RSI), consumer confidence index (CCI), etc and predict the speed with which the change is occurring in a particular trend. This insight on the market momentum can help the traders make better decisions and increase the probability of the number of successful trades they make.