DislikedHello everyone.
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Here's my only trade from today. Took this PB on the GBPUSD 5m chart.
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Should I have avoided this one because of the divergence shown?
....Ignored
observations for your trade: (looking exclusively at your chart)
-price seems range bound (looking at price & the MA's)
-very nice pin, imho, but it was not triggered on the next bar. it was triggered 4 bars after the pin (in case u still opted to trade it).
did u trade this pin on the close instead of putting an order above the pin?
-as i said, the pin was nice but the location was unideal ---it there is no space on the left/it is sort of in the middle of the range.
ideally, this kinds of pins are situated at a swing low (for bullish pin; swing high for bearish pins)
-divergence on M5/lower timeframes may/may not have a bearing on the subsequent price action.
[divergence occuring on higher timeframes potentially have more weight.]
in this case, the divergence happened several bars away from the pin, so IMHO it (divergence) has already played out/'expired' (price already went down after the divergence).
get more picky, demo, & learn more.
if u havent yet, read more on the james16 thread. IMHO, reading that thread is step 1. once more knowledgeable, only then should anyone venture into this thread, specially since this is an M5 method (a fast timeframe to trade).
Hope this helps