NZD/JPY
A bullish divergence occurs when the price of an asset is making lower lows, but a technical indicator (such as the Relative Strength Index, MACD, or another momentum oscillator) is making higher lows. This suggests that while the price is declining, the selling pressure is weakening, and momentum is building for a potential reversal to the upside.
There are two main types of bullish divergence:
Regular Bullish Divergence:
Price makes lower lows.
The indicator makes higher lows.
This signals that the downtrend might be losing steam, and a reversal to an uptrend could occur.
There are two main types of bullish divergence:
Regular Bullish Divergence:
Price makes lower lows.
The indicator makes higher lows.
This signals that the downtrend might be losing steam, and a reversal to an uptrend could occur.
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