Divergence and convergence. What is divergence in the Forex market? Divergence - this is a common topic divergence

The section is very easy to use. Just enter the desired word in the field provided, and we will give you a list of its meanings. I would like to note that our site provides data from various sources - encyclopedic, explanatory, word-formation dictionaries. Here you can also see examples of the use of the word you entered.

Meaning of the word divergence

divergence in the crossword dictionary

Dictionary of medical terms

divergence (divergentia; di- + lat. vergo to be directed, to tend) in biology

divergence of characters in the process of evolution, leading to the emergence of morphological and functional differences between groups of organisms that arose from common ancestors.

Explanatory dictionary of the Russian language. D.N. Ushakov

divergence

divergence, w. (French divergence) (scientific). Divergence in signs.

New explanatory dictionary of the Russian language, T. F. Efremova.

divergence

and. Divergence, branching, demarcation.

Encyclopedic Dictionary, 1998

divergence

DIVERGENCE (from the medieval Latin divergo - I deviate) in biology is the divergence of characteristics and properties in initially close groups of organisms in the course of evolution. The result of living in different conditions and unequally directed natural selection. The concept of divergence was introduced by Charles Darwin to explain the diversity of varieties of cultivated plants, breeds of domestic animals and biological species. Wed. Convergence.

divergence

in linguistics -

    the transformation of variants of a linguistic unit (usually variants of a phoneme) into independent units due to the elimination of the conditions that determined the variation.

    Differences in the implementation of one linguistic unit, e.g. Phonemes.

    The delimitation of dialects or variants of one language and their transformation into independent languages. Contrasted with convergence.

divergence

in mathematics - a scalar field characterizing the density of sources of a given vector field a(P); div notation a. Thus, the divergence of the velocity field in the steady motion of an incompressible fluid characterizes the intensity of the source at a given point.

Divergence

Divergence- a differential operator that maps a vector field onto a scalar one, “how much the incoming and outgoing field from a small neighborhood of a given point diverges,” more precisely, how much the incoming and outgoing flows diverge.

If we take into account that an algebraic sign can be assigned to a flow, then there is no need to take into account the incoming and outgoing flows separately; everything will be automatically taken into account when summing taking into account the sign. Therefore, we can give a shorter definition of divergence:

divergence is a linear differential operator on a vector field that characterizes the flow of a given field through the surface of a sufficiently small neighborhood of each internal point of the domain of definition of the field.

The divergence operator applied to the field $\ \mathbf F$ is denoted as

$\ \operatorname(div) \mathbf F$

$\ \nabla \cdot \mathbf F$.

Divergence (biology)

Divergence(in biology) - divergence of characters and properties in initially close groups of organisms during evolution, the result of living in different conditions and unequally directed natural selection

Divergence (linguistics)

Divergence(in linguistics) - a process of linguistic change that causes the separation of variants of one linguistic unit and the transformation of these variants into independent units, or the emergence of new variants in an already existing linguistic unit. When applied to linguistic entities, the term divergence denotes the historical divergence of two or more related languages, dialects, or variants of the literary norms of one language. The process of divergence is contrasted with the closely related process of linguistic convergence.

Examples of the use of the word divergence in literature.

In the process of subsequent evolution, there was mainly divergence types of the animal world and the replacement of the original low-organized primitive forms with more highly organized ones through even greater differentiation of the structure and functions of the tissues and organs of organisms.

They are reflected in solving a number of problems: divergence troglodytids and hominids, necrophagy, shortening of history, a special mechanism of inter-individual communication between prehumans, the place and role of language-words in the restructuring of the entire system of psychophysiological reactions and a number of others.

This wouldn't happen if divergence from the very beginning was accompanied by the demarcation of areas.

This kind of divergence will pose very serious problems to people in the near future.

He followed the sound, reached a narrow corridor and then made out the first words: Divergence de is equal to four pi po.

This conceptual turn was decisive: it opens up a field of study where each fact, established, isolated, and then opposed to a certain totality, could take a place in the entire series of events, convergence or divergence which would be, in principle, measurable.

Let us only note that the main reason divergence their systemic organization was the need to follow the laws of the Development of Matter.

Biological problem divergence paleoanthropes and neoanthropes, which proceeds quickly, is the most acute and relevant in the entire complex of questions about the beginning of human history facing modern science.

But we will turn our main attention to psychopathology as another source that can lead the researcher into the depths of that divergence, with which the human race began.

We cannot use what is said in this section to reconstruct the exact scheme divergence troglodytids and hominids, which began in the world of late paleoanthropes and ended only somewhere during the transition from fossil neoanthropes to modern ones.

My task is not to anticipate these future paleopsychological studies, but only to pose, along with the previous ones, this part of the problem divergence troglodytid and hominid.

After all, differences deepen only in the process divergence varieties, but at first they are insignificant.

To begin the analysis, it is only clear that, being a biological process, it at the same time had something that distinguished it from any other divergence in living nature.

But it is in this segment that almost the entire mystery is contained. divergence who gave birth to people.

From these facts, the conclusion is clear: neoanthropes settled to the farthest edges of the habitable world especially early in the era divergence with paleoanthropes.

If we take into account that an algebraic sign can be assigned to a flow, then there is no need to take into account the incoming and outgoing flows separately; everything will be automatically taken into account when summing taking into account the sign. Therefore, we can give a shorter definition of divergence:

divergence is a linear differential operator on a vector field that characterizes the flow of a given field through the surface of a sufficiently small (under the conditions of a specific problem) neighborhood of each internal point of the domain of definition of the field.

Divergence operator applied to a field F (\displaystyle \\mathbf (F) ), denoted as

div ⁡ F (\displaystyle \\operatorname (div) \mathbf (F) ) ∇ ⋅ F (\displaystyle \\nabla \cdot \mathbf (F) ).

Encyclopedic YouTube

    1 / 5

    ✪ What is divergence in Forex?

    ✪ Operator Nabla in 10 minutes. Gradient, Divergence, Rotor, Laplacian

    ✪ MACD. Convergence and Divergence

    ✪ Maxwell's equations. Lecture 2: field flow, divergence.

    ✪ Divergence and convergence in Forex. Where to open trades?

    Subtitles

Definition

The definition of divergence looks like this:

div F = lim V → 0 Φ F V (\displaystyle \operatorname (div) \,\mathbf (F) =\lim _(V\rightarrow 0)((\mathit (\Phi ))_(\ \mathbf (F ) ) \over V)) div F = ∇ ⋅ F (\displaystyle \operatorname (div) \,\mathbf (F) =\nabla \cdot \mathbf (F) \ \ \ )

Multidimensional, as well as two-dimensional and one-dimensional, divergence is defined in Cartesian coordinates in spaces of the corresponding dimension in a completely similar way (in the upper formula only the number of terms changes, while the lower one remains the same, implying the nabla operator of the appropriate dimension).

Physical interpretation

From the point of view of physics (both in the strict sense and in the sense of the intuitive physical image of a mathematical operation), the divergence of a vector field is an indicator of the extent to which a given point in space (more precisely, a fairly small neighborhood of the point) is the source or sink of this field:

div F > 0 (\displaystyle \operatorname (div) \,\mathbf (F) >0)- the field point is the source; div F< 0 {\displaystyle \operatorname {div} \,\mathbf {F} <0} - the field point is a drain; div F = 0 (\displaystyle \operatorname (div) \,\mathbf (F) =0)- there are no sinks and sources, or they compensate each other.

A simple, although perhaps somewhat schematic, example can be a lake (for simplicity - a constant unit depth with an everywhere horizontal velocity of water flow, independent of depth, thus giving a two-dimensional vector field in two-dimensional space). If you want to have a more realistic picture, then you can consider the horizontal projection of velocity integrated over the vertical spatial coordinate, which will give the same picture of a two-dimensional vector field in two-dimensional space, and the picture will not be qualitatively different for our purposes from the simplified first one, but quantitatively it will be generalization (very realistic). In such a model (both in the first and second variants), springs gushing from the bottom of the lake will give a positive divergence of the flow velocity field, and underwater drains (caves where water flows) will give a negative divergence.

The divergence of the current density vector gives a minus rate of charge accumulation in electrodynamics (since the charge is conserved, that is, it does not disappear or appear, but can only move across the boundaries of some volume in order to accumulate in it or leave it; and if they arise or positive and negative charges disappear somewhere - then only in equal quantities). (See continuity equation).

Geometric interpretation

If we take the set of directions of steepest descent on the earth's surface as a vector field (in two-dimensional space), then the divergence will show the location of the peaks and troughs, and at the peaks the divergence will be positive (the directions of descent diverge from the peaks), and at the troughs it will be negative (towards the troughs the direction of descent converge).

Divergence in physics

Divergence is one of the most widely used operations in physics. It is one of the fairly few basic concepts of theoretical physics and is one of the basic elements of physical language.

In the standard formulation of classical field theory, divergence occupies a central place (in alternative formulations it may not be at the very center of the presentation, but is still an important technical tool and an important idea).

In electrodynamics, divergence appears as a main construct in two of Maxwell's four equations. The basic equation of the theory of Newtonian gravity in field form also contains divergence (gravitational field strength) as the main structure. In tensor theories of gravity (including General Relativity, and with it in mind first of all), the basic field equation (in General Relativity, but as a rule - one way or another - in alternative modern theories too) also includes divergence in some generalization. The same can be said about the classical (that is, non-quantum) theory of almost any of the fundamental fields, both experimentally known and hypothetical.

In addition, as can be seen from the above examples, divergence is also applicable in a purely geometrical sense, and also - especially often - to various material flows (divergence in the speed of flow of a liquid or gas, divergence in the density of electric current, etc.).

Properties

The following properties can be obtained from the usual rules of differentiation.

  • Linearity: for any vector fields F And G and for all real numbers a And b
div ⁡ (a F + b G) = a div ⁡ (F) + b div ⁡ (G) (\displaystyle \operatorname (div) (a\mathbf (F) +b\mathbf (G))=a\; \operatorname (div) (\mathbf (F))+b\;\operatorname (div) (\mathbf (G)))
  • If φ is a scalar field, and F- vector, then:
div ⁡ (φ F) = grad ⁡ (φ) ⋅ F + φ div ⁡ (F) , (\displaystyle \operatorname (div) (\varphi \mathbf (F))=\operatorname (grad) (\varphi)\ cdot \mathbf (F) +\varphi \;\operatorname (div) (\mathbf (F)),) or ∇ ⋅ (φ F) = (∇ φ) ⋅ F + φ (∇ ⋅ F) . (\displaystyle \nabla \cdot (\varphi \mathbf (F))=(\nabla \varphi)\cdot \mathbf (F) +\varphi \;(\nabla \cdot \mathbf (F)).)
  • Property relating vector fields F And G, specified in three-dimensional space, with a rotor:
div ⁡ (F × G) = rot ⁡ (F) ⋅ G − F ⋅ rot ⁡ (G) , (\displaystyle \operatorname (div) (\mathbf (F) \times \mathbf (G))=\operatorname ( rot) (\mathbf (F))\cdot \mathbf (G) \;-\;\mathbf (F) \cdot \operatorname (rot) (\mathbf (G)),) or ∇ ⋅ (F × G) = (∇ × F) ⋅ G − F ⋅ (∇ × G) . (\displaystyle \nabla \cdot (\mathbf (F) \times \mathbf (G))=(\nabla \times \mathbf (F))\cdot \mathbf (G) -\mathbf (F) \cdot (\ nabla \times \mathbf (G)).)
  • The divergence from the gradient is the Laplacian:
div ⁡ (grad ⁡ (φ)) = Δ φ (\displaystyle \operatorname (div) (\operatorname (grad) (\varphi))=\Delta \varphi )
  • Divergence from rotor:
div ⁡ (rot ⁡ (F)) = 0 (\displaystyle \operatorname (div) (\operatorname (rot) (\mathbf (F)))=0)

Divergence in orthogonal curvilinear coordinates

Div ⁡ (A) = div ⁡ (q 1 A 1 + q 2 A 2 + q 3 A 3) = (\displaystyle \operatorname (div) (\mathbf (A))=\operatorname (div) (\mathbf ( q_(1)) A_(1)+\mathbf (q_(2)) A_(2)+\mathbf (q_(3)) A_(3))=)

1 H 1 H 2 H 3 [ ∂ ∂ q 1 (A 1 H 2 H 3) + ∂ ∂ q 2 (A 2 H 3 H 1) + ∂ ∂ q 3 (A 3 H 1 H 2) ] (\displaystyle =(\frac (1)(H_(1)H_(2)H_(3)))\left[(\frac (\partial )(\partial q_(1)))(A_(1)H_(2) H_(3))+(\frac (\partial )(\partial q_(2)))(A_(2)H_(3)H_(1))+(\frac (\partial )(\partial q_(3 )))(A_(3)H_(1)H_(2))\right]), Where H i (\displaystyle H_(i))- Lame coefficients.

Cylindrical coordinates

Lamé coefficients:

Hr = 1; Hθ = r; H z = 1. (\displaystyle (\begin(matrix)H_(r)=1;\\H_(\theta )=r;\\H_(z)=1.\end(matrix))) div ⁡ A (r , θ , z) = 1 r ∂ ∂ r (A r r) + 1 r ∂ ∂ θ (A θ) + ∂ ∂ z (A z) (\displaystyle \operatorname (div) \mathbf (A ) (r,\theta ,z)=(\frac (1)(r))(\frac (\partial )(\partial r))(A_(r)r)+(\frac (1)(r) )(\frac (\partial )(\partial \theta ))(A_(\theta ))+(\frac (\partial )(\partial z))(A_(z)))

Spherical coordinates

Lamé coefficients:

Hr = 1; Hθ = r; H ϕ = r sin ⁡ θ . (\displaystyle (\begin(matrix)H_(r)=1;\\H_(\theta )=r;\\H_(\phi )=r\sin (\theta ).\end(matrix))) div ⁡ A (r , θ , ϕ) = 1 r 2 ∂ ∂ r [ A r r 2 ] + 1 r sin ⁡ θ ∂ ∂ θ [ A θ sin ⁡ θ ] + 1 r sin ⁡ θ ∂ ∂ ϕ [ A ϕ ] (\displaystyle \operatorname (div) \mathbf (A) (r,\theta ,\phi)=(\frac (1)(r^(2)))(\frac (\partial )(\partial r) )\left+(\frac (1)(r\sin (\theta )))(\frac (\partial )(\partial \theta ))\left+(\frac (1)(r\sin (\theta )) )(\frac (\partial )(\partial \phi ))(\big [)A_(\phi )(\big ]))

Parabolic coordinates

Lamé coefficients:

H ξ = ξ + η 2 ξ ; H η = ξ + η 2 η ; H ϕ = η ξ (\displaystyle (\begin(matrix)H_(\xi )=(\frac (\sqrt (\xi +\eta ))(2(\sqrt (\xi ))));\\H_ (\eta )=(\frac (\sqrt (\xi +\eta ))(2(\sqrt (\eta ))));\\H_(\phi )=(\sqrt (\eta \xi )) \end(matrix))). div ⁡ A (ξ , η , ϕ) = 4 ξ + η ∂ ∂ ξ [ A ξ ξ 2 + ξ η 2 ] + 4 ξ + η ∂ ∂ η [ A η η 2 + ξ η 2 ] + 1 ξ η ∂ ∂ ϕ [ A ϕ ] (\displaystyle \operatorname (div) \mathbf (A) (\xi ,\eta ,\phi)=(\frac (4)(\xi +\eta ))(\frac (\ partial )(\partial \xi ))\left+(\frac (4)(\xi +\eta ))(\frac (\partial )(\partial \eta ))\left+(\frac (1)(\sqrt (\xi \eta )))(\frac (\partial )(\partial \phi ))(\Big [)A_(\phi )(\Big ]))

Elliptical coordinates

Lamé coefficients:

H ξ = σ ξ 2 − η 2 ξ 2 − 1 H η = σ ξ 2 − η 2 1 − η 2 H ϕ = σ (ξ 2 − 1) (1 − η 2) (\displaystyle (\begin(matrix )H_(\xi )=\sigma (\sqrt (\frac (\xi ^(2)-\eta ^(2))(\xi ^(2)-1)))\\H_(\eta )= \sigma (\sqrt (\frac (\xi ^(2)-\eta ^(2))(1-\eta ^(2))))\\H_(\phi )=\sigma (\sqrt (( \xi ^(2)-1)(1-\eta ^(2))))\end(matrix))). div ⁡ A (ξ , η , ϕ) = 1 σ (ξ 2 − η 2) ∂ ∂ ξ [ A ξ (ξ 2 − η 2) (ξ 2 − 1) ] + (\displaystyle \operatorname (div)\ mathbf (A) (\xi ,\eta ,\phi)=(\frac (1)(\sigma (\xi ^(2)-\eta ^(2))))(\frac (\partial )(\ partial \xi ))\left+) 1 σ (ξ 2 − η 2) ∂ ∂ η [ A η (ξ 2 − η 2) (1 − η 2) ] + 1 σ (ξ 2 − 1) (1 − η 2) ∂ ∂ ϕ [ A ϕ ] (\displaystyle (\frac (1)(\sigma (\xi ^(2)-\eta ^(2))))(\frac (\partial )(\partial \eta ))\left+(\frac ( 1)(\sigma (\sqrt ((\xi ^(2)-1)(1-\eta ^(2)))))(\frac (\partial )(\partial \phi ))(\Big [)A_(\phi )(\Big ]))

Divergence in arbitrary curvilinear coordinates and its generalization

The formula for the divergence of a vector field in arbitrary coordinates (in any finite dimension) can be easily obtained from the general definition through the limit of the flux-to-volume ratio, using the tensor notation of the mixed product and the tensor volume formula.

There is a generalization of the divergence operation to act not only on vectors, but also on tensors of higher rank.

In general, divergence is determined by the covariant derivative:

div = (∇ ⋅) = R → α ∇ α ⋅ (\displaystyle \operatorname (div) =(\nabla \cdot)=(\vec (R))^(\alpha )\nabla _(\alpha )\cdot ), Where R → α (\displaystyle (\vec (R))^(\alpha ))- coordinate vectors.

This allows you to find expressions for divergence in arbitrary coordinates for a vector:

∇ ⋅ v → = R → α ∇ α ⋅ v i R → i = ∇ i v i (\displaystyle \nabla \cdot (\vec (v))=(\vec (R))^(\alpha )\nabla _(\ alpha )\cdot v^(i)(\vec (R))_(i)=\nabla _(i)v^(i)). ∇ ⋅ T = R → α ∇ α ⋅ T i j R → i R → j = R → j ∇ i T i j (\displaystyle \nabla \cdot T=(\vec (R))^(\alpha )\nabla _ (\alpha )\cdot T^(ij)(\vec (R))_(i)(\vec (R))_(j)=(\vec (R))_(j)\nabla _(i )T^(ij)).

In general, divergence lowers the rank of the tensor by 1.

Properties of tensor divergence

∇ ⋅ v → v → = v → ∇ ⋅ v → + (v → ⋅ ∇) v → (\displaystyle \nabla \cdot (\vec (v))(\vec (v))=(\vec (v) )\nabla \cdot (\vec (v))+\left((\vec (v))\cdot \nabla \right)(\vec (v)))

The most important question that haunts all traders in the world concerns how to determine the moment when the price is ready to change its direction. But, as it turns out, technical analysis has long offered one of the very effective solutions that, with the highest degree of probability, allows you to do this. What kind of miracle remedy is this? We are talking about divergence in Forex. It is this that makes it possible to enter the market using the most favorable moment. Given such an important characteristic, every trader should carefully study what divergence is and how you can apply it time after time, increasing your income.

How to make a profit

Divergence is a signal that shows the market is ready to reverse, so it is extremely important to find, identify and use it to your advantage. In order to better understand what divergence is in Forex, you need to go back to the origins of technical analysis and remember how price movements occur.

At this stage, you need to understand that, as a rule, quotes fluctuate within a certain range, reach points of support and resistance, can rebound and reverse, set new levels, and so on. If you trace any price chart, it becomes obvious that the price always reverses at certain intervals. These reversal points are extremely important for making a profit, regardless of the trading strategy used for trading or the chosen time frame.

What indicators are used to search for divergences?

Typically, any indicator from the Oscillators class helps to find divergence:

  • stochastic;
  • MACD;
  • CCI and so on.

Why oscillators? Because in practice, they are the ones who best show the resulting difference in values, which indicates the market’s readiness to change the trend - trend. Given the alternating movement of prices up and down, Forex divergence can be either bullish or bearish.

How to determine divergence

It is extremely difficult to overestimate the importance of searching for turning points, because they provide the best signals for entry and, more importantly, for exit, since the statistics of traders’ failures show that not all traders can close a deal on time; they often overextend the position or exit too early, losing resulting in some or even all of the profit. How do you determine divergence on a price chart? There is nothing complicated about this; it is enough to find the discrepancy between the quote level diagram and the picture of the indicator used.

Types of divergences

All divergences can be divided into three main types, within which there is a division into two types.

1. The strongest is Forex divergence, which is classified as the first type. By the way, this is also the most pronounced of the divergences, which is quite easy to determine. The main thing is to remember the basic rule: there should be two extreme points on the price chart, which are reflected in the opposite direction in the indicator picture.

Read also:

The first type includes bearish divergence, which is accompanied by the formation of two consecutive peaks, marking new price levels, and two downward movements on the indicator corresponding to them. As soon as such a situation is found on the chart, you can immediately place a short trade and calmly wait for profit.

The second type of the first type is the reverse bearish - bullish divergence. It also obeys the specified rule, only the price chart must show two bottoms (bottoms), the second of which is lower than the first and sets a new level of price decline. At the same time, the indicator shows two tops formed in a row, which together gives a buy signal.

2. The second type is no longer so well expressed, since the market does not necessarily have to have a strong trend with good one-way movement. That is, the price could fall and rise, ultimately forming a figure familiar to all who have studied technical analysis - a double top. The formation of such a signal will allow us to talk about the first type - bearish divergence of the second type. In this case, for this figure, the indicator chart should show two descending (!) peaks.

The second type of the second type - bullish Forex divergence is accompanied by the formation of a double day on the price chart and two ascending peaks on the chart drawn by the indicator. Accordingly, the formation of two such figures informs the trader of a signal to buy the currency.

3. The third type of divergence in Forex is also accompanied by the formation of a double top or bottom, but not on the price chart, but on the indicator chart. At the same time, the price chart should show a strong upward movement (two consecutive tops) for a bullish divergence of the third type or downwards (two consecutive bottoms) for a bearish one.

Convergence

However, when using divergences, it is necessary to remember certain exception situations, when, after the formation of the necessary conditions for a trend change, the initial trend continues to develop without a reversal. In such cases we are talking about convergence or, as it is also called, hidden divergence.

In such cases, it is worth revisiting the cyclical nature of the market and understanding the trading opportunities created by convergence formation. In practice, it can have many benefits, which will be reflected in the form of profits that end up in the pockets of traders. In such cases, when Forex divergence is observed and the trader opens an order based on a signal, he should in no case forget that price movement in the opposite direction may not indicate a change in trends, but a correction. Naturally, it would be appropriate to close the trade with a slight minus or plus on the trailing stop (depending on the volume of the rollback) and join the trend in a very promising place in terms of making a profit.

How to Define Convergence

There are also rules for finding and defining convergence or hidden divergence, so the trader does not need to guess; he is, with a high degree of probability, always ready to make a profitable trade. So, in particular, if two descending bottoms have formed on the chart, and the indicator shows the corresponding two tops, where the second is higher than the first, we can state the fact of a hidden bullish divergence that has developed in the market, which indicates that it is still relevant to sell the currency, expecting good returns .

Identification rules

Quite often, a difficulty arises in defining divergence, which lies in the meaning of this phenomenon as given by financial market theorists. This problem lies in the need to comply with the rule of two consecutive tops or bottoms. But as practice shows, in order for a trader to start using a divergence signal to his advantage, it is not at all necessary to observe ideal conditions.

Therefore, if there was an unclear movement between two tops that established new levels of resistance and support with the formation of a weak top, then the appearance of such market “noise” can be ignored and without any fear, use the advantages that the bearish divergence signal provides in this case.

How to use divergence in trading

The advantage of using divergence in trading is that the signals it generates work well on any time frame. Therefore, you can use such simple and effective forecasts both for scalping and for long-term trading, choosing options that are more preferable for yourself. The main quality of divergences is revealed here - their versatility, which, combined with the accuracy of the results, makes familiarization with them and their use in trading mandatory for everyone who wants to have a positive result from trading on Forex.

To correctly “understand” how Forex divergence trading occurs, a trader must understand what it signals. Here it is extremely important to remember the following: “Divergence always indicates that the market will reverse, but does not indicate to what point this reversal will last.” Simply put, a trader cannot be 100% sure whether a trend change has occurred or whether a divergence signal only indicates the onset of a correction.

When to close a deal

Since it is very easy to enter the market on a divergence signal, the main problem with how to effectively make money using it is finding the optimal exit point. There are many strategies here, but probably the simplest and most effective of them is the approach using different time frames.

That is, if, for example, on M30, after a divergence signal, a reversal began and the price sets new peaks one after another, allowing one to catch the strong movement that has begun, then a signal about the completion of such a direction can be looked for on the hourly timeframe. As soon as it shows that the trend is ready to change again, you need to urgently exit the market. In this case, in no case should we forget about the use of trailing stops, which should help minimize losses or even make a small profit in case of weak price pullbacks.

Bottom line

Thus, having learned what Forex divergence is, how to identify it and, most importantly, how to apply it for practical purposes to make good profits, a trader can only use it by building a simple and effective trading strategy. As practice shows, the use of divergence always gives an accurate signal to place an order and with a high degree of probability we can say that this excellent tool will still be relevant in many years, allowing currency speculators to increase their capital.

Divergence

Multidimensional, as well as two-dimensional and one-dimensional, divergence is defined in Cartesian coordinates in spaces of the corresponding dimension in a completely similar way (in the upper formula only the number of terms changes, while the lower one remains the same, implying the nabla operator of the appropriate dimension).

Physical interpretation

From the point of view of physics (both in the strict sense and in the sense of the intuitive physical image of a mathematical operation), the divergence of a vector field is an indicator of the extent to which a given point in space (or a very small neighborhood of a point) is the source or sink of this field:

- the field point is the source; - the field point is a drain; - there are no sinks and sources, or they compensate each other.

A simple, although perhaps somewhat schematic, example can be a lake (for simplicity - a constant unit depth with an everywhere horizontal velocity of water flow, independent of depth, thus giving a two-dimensional vector field in two-dimensional space). If you want to have a more realistic picture, then you can consider the horizontal projection of velocity integrated over the vertical spatial coordinate, which will give the same picture of a two-dimensional vector field in two-dimensional space, and the picture will not be qualitatively different for our purposes from the simplified first one, but quantitatively it will be generalization (very realistic). In such a model (both in the first and second variants), springs gushing from the bottom of the lake will give a positive divergence of the flow velocity field, and underwater drains (caves where water flows) will give a negative divergence.

The divergence of the current density vector gives a minus rate of charge accumulation in electrodynamics (since the charge is conserved, that is, it does not disappear or appear, but can only move across the boundaries of some volume in order to accumulate in it or leave it; and if they arise or positive and negative charges disappear somewhere - then only in equal quantities). (See continuity equation).

Geometric interpretation

If we take the set of directions of steepest descent on the earth's surface as a vector field (in two-dimensional space), then the divergence will show the location of the peaks and troughs, and at the peaks the divergence will be positive (the directions of descent diverge from the peaks), and at the troughs it will be negative (towards the troughs the direction of descent converge).

Divergence in physics

Divergence is one of the most widely used operations in physics. It is one of the fairly few basic concepts of theoretical physics and is one of the basic elements of physical language.

In the standard formulation of classical field theory, divergence occupies a central place (in alternative formulations it may not be at the very center of the presentation, but is still an important technical tool and an important idea).

In electrodynamics, divergence appears as a major construct in two of Maxwell's four equations. The basic equation of the theory of Newtonian gravity in field form also contains divergence (gravitational field strength) as the main structure. In tensor theories of gravity (including General Relativity, and with it in mind first of all), the basic field equation (in General Relativity, but as a rule - one way or another - in alternative modern theories too) also includes divergence in some generalization. The same can be said about the classical (i.e., non-quantum) theory of almost any of the fundamental fields, both experimentally known and hypothetical.

In addition, as can be seen from the above examples, divergence is also applicable in a purely geometrical sense, and also - especially often - to various material flows (divergence in the speed of flow of a liquid or gas, divergence in the density of electric current, etc.).

Properties

The following properties can be obtained from the usual rules of differentiation.

  • Linearity: for any vector fields F And G and for all real numbers a And b
  • If φ is a scalar field, and F- vector, then:
or
  • Property relating vector fields F And G, specified in three-dimensional space, with a rotor:
or
  • The divergence from the gradient is the Laplacian:
  • Divergence from rotor:

Divergence in orthogonal curvilinear coordinates

Where are the Lame coefficients.

Cylindrical coordinates

Lamé coefficients:

.

Spherical coordinates

Lamé coefficients:

.

Parabolic coordinates

Lamé coefficients:

.

Elliptical coordinates

Lamé coefficients:

.

Divergence in arbitrary curvilinear coordinates and its generalization

The formula for the divergence of a vector field in arbitrary coordinates (in any finite dimension) can be easily obtained from the general definition through the limit of the flux-to-volume ratio, using the tensor notation of the mixed product and the tensor volume formula.

There is a generalization of the divergence operation to act not only on vectors, but also on tensors of higher rank.

In general, divergence is determined by the covariant derivative:

, where are coordinate vectors.

This allows you to find expressions for divergence in arbitrary coordinates for a vector:

. .

In general, divergence lowers the rank of the tensor by 1.

Properties of tensor divergence

see also


Wikimedia Foundation. 2010.

Synonyms:

Antonyms:

See what “Divergence” is in other dictionaries:

    Divergence- (from Latin divergens, genitive divergentis diverging in different directions), divergence, branching, deviation. For example, dialect divergence is the divergence of dialects, leading to their transformation into independent languages; divergence... Illustrated Encyclopedic Dictionary

    - (I deviate from the medieval Latin divergo) in biology, the divergence of characteristics and properties in initially close groups of organisms in the course of evolution. The result of living in different conditions and unequally directed natural selection. Concept... ...

    In mathematics, a scalar field characterizing the density of sources of a given vector field a(P); div notation a. Thus, the divergence of the velocity field in the steady motion of an incompressible fluid characterizes the intensity of the source at a given point... Big Encyclopedic Dictionary

    - (from the Middle Ages, Latin divergo, I deviate, I depart), in evolutionary teaching, the divergence of the characteristics of organisms during the evolution of different phyletics. lines that arose from a common ancestor. They often talk about the D. of the groups of organisms themselves. The term “divergence of characteristics”... ... Biological encyclopedic dictionary

    Divergence; speciation, divergence, variation. Ant. convergence, convergence Dictionary of Russian synonyms. divergence noun, number of synonyms: 5 variation (8) ... Synonym dictionary

    divergence- and, f. divergence f. lat. divergere to detect a discrepancy. scientific Divergence in signs. Ush. 1934. Lex. Brokg.: divergence; Ush. 1934: diverge/nation... Historical Dictionary of Gallicisms of the Russian Language

Let's look at what a divergent state of the economy is.

Word is applicable not only to economic science, this term is also used in many other sciences, completely unrelated to economics and sociology. In this article we will consider divergence only from an economic point of view.

Divergence- divergence, stratification, accumulation of differences. In the economic life of an individual state, as well as the world as a whole, it can take a wide variety of forms. For example, the increase in class differences between rich and poor in Russia in the 18th century is an economic divergence, the division of countries into “World Powers”, “middle peasants” and “third world countries” is also an economic divergence. Despite all the possible variety of characteristics and forms, economists have nevertheless introduced some classification of this characteristic.

Macroeconomic divergence- this is a bundle at the global level. This includes the example of the welfare of various countries. As states develop, some necessarily lag behind in development, while others, on the contrary, move forward and prosper. As a result of this phenomenon, interstate divergence in economic status arises. Experts have also noted that states can easily change roles in this process by entering into partnerships with other states, reducing or increasing the well-being of society according to the conditions of domestic policy.

Microeconomic divergence- This is a stratification at the level of one country. As a rule, now such a stratification is not so sharp; it is smoothed out by support programs implemented by the Government of the Russian Federation, but despite this, a vast “middle class”, a less significant “elite” and a layer of lumpen people still stand out.

Economic convergence as the opposite of divergence

Convergence in economics is the opposite concept of divergence. If divergence is separation, then convergence, on the contrary, is rapprochement. The rapprochement of two or more countries at the economic level can be a consequence of their cooperation (cooperation between the United States of America and Cuba is currently beginning) or new political programs (the Russian Federation received the status of a “world power” largely thanks to V.V. Putin’s program).

The maximum of social convergence in Russia was observed between 1917 and 1997, the period when the Bolshevik Party was in power. The main task of the Bolsheviks was to restore equality of all segments of the population and eradicate the lumpen. Despite this, the political and economic elites, even if on a smaller scale, still continued to exist.

Divergence in Forex

Economic divergence has found a narrower definition in the Forex currency market. As we have already defined above, divergence is called divergence. In the case of Forex, this will be a discrepancy between the indicator movement and the direction of price movement.

What does Divergence indicate in Forex, and how should you correctly understand this signal? Typically, convergence works in Forex - an indicator of normal, sustainable development. If divergence occurs, you need to expect big changes in the operation of the market system. As a general rule, if you are buying options or currencies in a divergent market condition, it is better to bet your money on " recession”, rather than “rise”, since decline will be more likely. There are, of course, exceptions. Investors who do not consider themselves Forex professionals are not recommended to trade in divergent market conditions, since the risk of losing their invested money is very high. It is also best to turn off financial advisors who trade for you for a while.

Which programs best show divergence? As you know, there are now a huge number of terminals on the Internet for trading currency pairs. Which of these terminals can most correctly and accurately indicate the divergent state of the market and correctly direct the activities of the exchange player? A lot of investors recommend the MT4 terminal - “MetaTrader4”, in particular, the Forex4You broker and many others work with this program.

How to trade correctly when a divergence condition occurs? What advice do experienced traders who have been working in the Forex market for several years usually give to beginners when analyzing divergence?

Since all Forex is quite volatile and difficult to predict, in no case you can't place bets right away when a divergent state occurs. If you still do not intend to leave and are ready to continue trading, wait a while and analyze how the divergence chart will change. Sometimes one divergence follows another, and this is the most dangerous and difficult trading period. Wait and watch the schedule change after some time, and only then, based on the information received from the terminal, place bets and wait for the results. Under no circumstances should you rush to make decisions, even if the divergence begins to change in a negative direction. Be aware of increased market volatility during this period and do not rush to conclusions - everything can change.

We became familiar with the concepts of economic divergence/convergence, looked at some real-life examples, and also learned how to analyze these phenomena in the Forex market. One of the greatest investors of our time, Warren Buffett, says that a professional investor can make money from both market downturns and upswings. Therefore, any changes in Forex, and in the economy in general, no matter how terrible they may seem, can result in big profits and high personal economic priorities. You just need to be able to understand and analyze them correctly. Now there are a huge number of online lessons on proper trading in the economic market. Check out these lessons if you want to make really good money from exchange rates and trading. Good luck to you!

Stay up to date with all the important events of United Traders - subscribe to our

Latest materials in the section:

Congratulations on receiving a loan from OTP Bank!
Congratulations on receiving a loan from OTP Bank!

OTP Bank offers in amounts from 15 to 4 million rubles. The borrower can use the loan money for any needs. The loan is issued for a period of one year...

OTP loan download application to your phone
OTP loan download application to your phone

Internet banking is becoming a common service in the Russian Federation, more and more citizens are switching to online banking...

A credit limit has been set: what does this mean?
A credit limit has been set: what does this mean?

Let's look at the easiest way to reduce the credit limit on a Privatbank credit card. The easiest way to do this is...