Disliked{quote} Have to thank you for Divergence. It's my best tool in reversal identification. Last three months I was studying deep Divergence trading. It works 100 % on all pairs. That's why I am very selective in choosing Divergence to trade. Only one thing I didn't figure, how long will reversal last? On smaller types of divergence ( like one you spotted today ) it's usually 50% of previous moves. Which means if it played E will get down to 1979. If you have anything to read about it I will really appreciate it. I searched across...Ignored
Actually your concern is everybody's concern.. divergence occurs when numbers don't add up anymore.. it reflects a change in market behavior but it doesn't guarantee it.. But since trading is about possibilities we always want to pick the higher odds. Once we spot a divergence we have to be aware where nearest support and where nearest resistance is. Therefore you should research more about how to spot and define support and resistance areas. I still try to improve myself around this topic. The better you get the more success you will have trading divergences.
50% might not be wrong for a number of cases but the statistics might speak different. Therefore I focus more on 61.8% and if I want to risk a little more I finally allow 78.6% to be touched but if market comes back more than that I am out. 78.6 level is actually a good place to enter into opposite direction of the retrace which means: following the trend
I always use uncle google and the free internet for my research. Just focus on S/R for a month and you will be good.
Stay Green
Be a seer, not a looker!
Ata's Trend Hunter V3.5 All Time Return:
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