The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Divergence Analysis

Figure 9.44 Bullish and Bearish (Standard and Reverse) Divergence—Part 2.

Figure 9.45 The Four Standard and Reverse Divergences in Action.

Source: MetaTrader 4

points 4 and 6. Reverse bearish divergence is seen between points 3 and 4, while

reverse bullish divergence is seen between points 7 and 8 as well as between

points 8 and 9. A few instances of agreement between the oscillators can be

observed between points 1 and 2 as well as between points 7 and 8. The dou-

ble divergence arising from the alignment of the MACD and CMF oscillators

between points 1 and 2 gave rise to a significant pullback in price from around