Close Menu
Daily ForexDaily Forex
  • Home
  • Broker Comparison
  • Market Rates
  • Market Updates
  • News
  • About us
  • Contact us
  • List your Broker
  • Advertise with us

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Japanese Yen and Australian Dollar Outlook: Inflation and China’s Industrial Data Drive Market Moves

June 27, 2025

US Dollar Drops to Multi-Year Lows: What It Means for Gold, Silver, and Market Sentiment

June 27, 2025

USD to PKR Exchange Rate – Opening Market Report (June 27, 2025)

June 27, 2025
Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • List Your Broker
  • Advertise with Us
  • Economic Calendar
Facebook X (Twitter) Instagram YouTube Telegram
Daily ForexDaily Forex
Demo
  • Home
  • Broker Reviews
  • Learn Forex
  • Learn Crypto
  • Market Rate
  • Market Updates
  • News
Daily ForexDaily Forex
Home » What is Regular Divergence in Forex Trading?
Learn Forex

What is Regular Divergence in Forex Trading?

By Yasher RizwanJune 17, 2025No Comments2 Mins Read0 Views
Facebook Twitter Pinterest LinkedIn Telegram Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

Regular divergence is a key technical analysis signal used to anticipate potential trend reversals in the forex market. It occurs when the movement of price and momentum indicators begin to disagree — often signaling that the current trend is weakening.

There are two main types of regular divergence:

  • ✅ Regular Bullish Divergence
  • ✅ Regular Bearish Divergence

✅ Regular Bullish Divergence

A regular bullish divergence appears when:

  • Price forms lower lows (LL)
  • But the oscillator forms higher lows (HL)

This setup typically occurs at the end of a downtrend and suggests a possible bullish reversal.

The reason? Momentum (represented by the oscillator) is no longer supporting the bearish price move. If the oscillator fails to confirm a new low while the price does, it signals a weakening downtrend — and a likely price rebound.

📉 Signal: Watch for the price to stop declining and start rising.


✅ Regular Bearish Divergence

A regular bearish divergence occurs when:

  • Price forms higher highs (HH)
  • But the oscillator forms lower highs (LH)

This typically happens during an uptrend and indicates that the bullish move may be losing strength.

If the price makes a new high, but the oscillator doesn’t confirm with a higher high, it may signal a potential trend reversal to the downside.

📈 Signal: Expect the price to drop after forming the second peak.


🔍 How to Use Regular Divergence

Regular divergence is best used when trying to identify market tops and bottoms. It acts as a warning that momentum is shifting, and the current trend may not be sustained much longer.

By paying attention to divergence between price action and indicators like:

  • RSI (Relative Strength Index)
  • MACD (Moving Average Convergence Divergence)
  • Stochastic Oscillator

…you can improve your chances of entering or exiting trades at optimal points.


What’s Next?

Now that you’ve learned about regular divergence, it’s time to uncover its lesser-known cousin: hidden divergence.

Don’t worry — it’s not buried deep like some market mystery. It’s simply hidden within the current trend and signals trend continuation rather than reversal.

➡️ Let’s dive into hidden divergence next.

Stay Educated with Daily Forex Pakistan.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

How to Avoid Entering Too Early When Trading Divergences

June 22, 2025

How to Trade Divergences in Forex

June 21, 2025

Understanding Hidden Divergence in Forex Trading

June 20, 2025

Trading Divergences in Forex: Spot Trend Reversals Early

June 16, 2025

Harmonic Price Patterns – A Quick Summary

June 15, 2025

How to Trade Harmonic Price Patterns in 3 Simple Steps

June 14, 2025
Leave A Reply Cancel Reply

Top Posts

Should Forex Traders Use Brokers Offering Deposit Bonuses? Is It Really Worth It?

March 6, 20252,715 Views

Pakistan Confident in IMF Bailout Review as Economic Stability Gains Momentum

March 4, 20252,651 Views

Gold Price in Pakistan Today – March 7, 2025 (Morning Update)

March 7, 20252,640 Views
Don't Miss

Japanese Yen and Australian Dollar Outlook: Inflation and China’s Industrial Data Drive Market Moves

June 27, 2025

Japanese Yen and Australian Dollar react to key inflation reports and China’s industrial data, shaping forex market sentiment.

US Dollar Drops to Multi-Year Lows: What It Means for Gold, Silver, and Market Sentiment

June 27, 2025

USD to PKR Exchange Rate – Opening Market Report (June 27, 2025)

June 27, 2025

Gold Prices – Opening Rates (June 27, 2025)

June 27, 2025
Stay In Touch
  • Facebook
  • YouTube
  • TikTok
  • WhatsApp
  • Twitter
  • Instagram
Latest Reviews
Daily Forex
Facebook X (Twitter) YouTube
  • Home
  • Privacy Policy
  • Terms of use
  • Disclaimer
  • Feedback
Copyright © 2025 DailyForex.pk. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.