How to determine convergent

In forex trading, convergent is an abnormal condition that will occur trend reversal.

Convergent meaning is actually a condition where the graph moves lower than before but does not follow with the lowering of the oscilator indicator. Under normal conditions, the movement between the graph and the indicator is in the same direction. So when the direction is no longer synonymous, this can occur irregularities and peculiarities.

In pokokus, long graph movement during the small convergence occurs. Can be likened to convergent movement is not powerful. This is what causes convergence is very easy to reverse.



The way to transact with a convergent strategy begins by defining convergent first. Here's how the forex analysis determines convergent:

1. Make sure the bollinger is not in a breakout / Widening condition

2. the point that should be the nearest low of the indicator bottom

3. Body candle when it happens convergent must be longer than body candle before.

Rules of play: Open position if convergent candle has just formed, and the price is still around the new candle opening value.

Enter the market at the same convergent event using Buy Bottom Sell Top strategy. However, if seen from the next movement, the movement of the graph after convergence occurs longer.

Is convergent going for a reversal down?

Of course. Abnormalities in the uptrend is called diverging. That is the condition where the graph moves up but does not participate in the ondikator heights.

The principle of cooperation, ie open position when the new convergence occurs and the price is around the next open candle price.

How to Determine Your Fingertips

The end of the pursuit is an area with very little risk and the possibility of big profits. With that reason, it will happen again trend is happening.

As long as it falls, there must be a tip. How to determine this translation tip?

Keep in mind it is a test to measure the strength of the trend. The reason may be the profit action of some traders or not the trend may not be further.

But when traders are hesitant and do profit-taking earlier out of the market, then the loser is the trend of the controller or who believes the trend will continue, so that the market back moves towards him following the direction that his master trusted.

Here's how the forex analysis of the final explanation:

1. Use the middle bollinger band (12,2) as support or resistance.

2. Use the Money Flow index as a measure of market saturation.

3. Make a transaction when a wax reversal

The rules of the game, occurs after a strong band breakout or trend.

Example:

Correction on the ascending trend

correlation

Correction on downtrend

downs

That is how the forex analysis to determine the spearhead. In essence resistant to stop.

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