Divergence is one of the key concepts in technical analysis, widely used in Forex to find signals about possible trend reversals or continued price movement. Understanding and properly utilizing divergence can significantly improve the accuracy of predictions in the financial markets. Like any other trading strategy, it requires the use of stop-losses to minimize losses. Stop-loss can be set behind the nearest highs or lows depending on the direction of the trade. Take-profits can be set at support or resistance levels or at target levels based on the market structure. Market participants can open a short position assuming that the price will reverse downward. Stop-loss is set just above the last price high and take profit can be placed at the nearest support level. Divergence works most effectively in a stable trend. In a sideways (flat) market, divergence signals may be less reliable. The trending market offers more opportunities to identify strong divergences, indicating a weakening or reversal of the current trend. It is recommended to wait for confirming signals, which can be breakouts of important support/resistance levels, completion of candlestick patterns or changes in trading volumes. Confirmation helps to reduce the risk of opening positions based on incorrect signals. To analyze divergences, you should use time-tested indicators such as RSI, MACD and Stochastic. These oscillators have proven themselves in various market conditions. It is important to adjust the oscillator parameters for a specific financial instrument and time interval to get more accurate signals. In conditions of a strong uptrend or downtrend, divergence may not work temporarily, as the trend force prevails over the signals of oscillators. In such cases, it can only serve as a warning of a possible correction, but not a reversal. That is why it is important to evaluate the market situation in a complex way. Regardless of the signal strength, it is always important to apply competent risk management. Use stop losses to limit possible losses and do not risk too much of your deposit in one trade. Applying risk management will protect your capital from sharp market movements, even if the divergence signal turns out to be false. This is a powerful tool of technical analysis, which allows market participants to predict possible trend reversals or continuation of the existing movement. It requires understanding of its limitations and competent application. Using divergence together with other indicators, candlestick patterns and support/resistance levels will significantly increase the accuracy of signals and reduce the risk of trading. Proper use in conjunction with sound risk management can significantly increase the chances of successful trades in the financial markets. Ultimately, divergence remains an important element in the arsenal of any trader seeking stable profits and long-term success in the markets.