This article is taken from the Forex Journal (October 2009 issue).
The author, James Chen, CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading forex broker under the City Index Group. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as author of the new book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009).
- Many Forex traders consider divergence to be a complete, self-contained trading signal that can accurately forecast potential reversals or trend continuations... Other traders dismiss divergence entirely, regarding it as little more than a chart anomaly that appears randomly and for no meaningful purpose. These rather extreme viewpoints are both relative misconceptions.
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