I don't trade divergences but they are interesting to confirm a trend change. One in particular which has caught my eye is the daily on GBP/JPY. With a stochastic setting of 8,3,3 there is a considerable discrepancy with what the stochastic is indicating and the price is doing. This is called "hidden bearish divergence. There is a likelihood the price could make new lows.
Any comments on this would be welcome.
Any comments on this would be welcome.
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