In the market there are two types of market divergences that can occur: a bullish divergence and a bearish divergence. Both of these divergences are important and you need to know how they work and how you can benefit from this knowledge.
In this short educational trading video, I will show you the tools I use to spot market divergences. We will be using the Relative Strength Indicator (RSI) and the Moving Average Convergence Divergence indicator (MACD) which was developed by a friend and mine, Gerald Appel.
As always our videos are free to watch and there are no registration requirements. If you would like to comment on this or any of our other videos, please feel free to do so on our Trader's Blog.
All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub
There are times when markets reverse for no apparent reason and seem to defy any news that would support the direction of the trend. We call the this occasional event the 
