DislikedHi All, been lurking in this forum for several months now, and it has been the most useful resource I found on the internet with regards to trading! After blowing up 2 accounts I decided to start working on demo until i am profitable for at least 6 month. Thanks specially to Mike for the excellent videos and Phanti for the price action trading ebook! I would like to ask a question about divergence at key levels. I think understand the concept of regular and hidden divergence when the price is trending (up: HL/HH or down: LH/LL). My question is more...Ignored
The appearance of divergence is a sign that a trending market may turn. Other than the particular indicator whether it is MACD, CCI or RSI is irrelevant. In fact divergence is really easily recognized without the use of indicators. But the point here is that divergence is just one small piece of a developing story and shouldn't be used by itself. I personally think it is quite minor. A wedge with an accurate lower border in an uptrend like in the example shown is all you need. A breakout of the rising TL with good PA signals a possible trade.