Forex Binary Option Strategy Divergence + RSI | Forex
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Divergence + RSI The problem of most technical indicators is the fact they are lagging. It happens because the calculation formula is attached to an instrument price, that is when the price starts rising, momentum makes the indicator move higher and vice versa. Therefore, false signals and delays are emerging. An effective way to get over this disadvantage is to use divergence effect. Divergence occurs when there is a discrepancy between the price and the technical indicator, in brief, this is an indicator denial to confirm a higher price high. The price divergence is a reversal model, and for its detection the oscillator type indicators, like the RSI, are used.
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