You know why I am revisiting divergence through this thread.
I am currently a 'mostly' if not fully PA trader. I pay a lot of attention to very small details here and there on different TFS when it comes to S/R/TLS/Patterns, Candles, etc..
However, I know that a flexibility is required. I have seen 'Divergence' traders who are more flexible than me with regard to their levels.
We all know that the market has tides and ripples and minute structures. Even Harmonics people give an explanation for why price stops a tad before previous peak/trough because of a certain harmonic ratio and so on.
Any way, the idea of working on very minute structures in tandem with bigger TFs was something I thought of a lot in the past. The idea is simply using the initial momentum on minute structure with the green light of divergence in HTFs. Never knew there was a book actually written about it.
For me Divergence in the past was one of the tools to confirm my trade but then I realised I don't really need it at all. and I kind of ditched it away.
But what if there are no clear levels (PA TLs, S/Rs, etc..), how to establish a bias? There are tons of divergences on very High Timeframes that do not really mature to what is anticipated. Ok, but we can still trade the very smaller structures that form without being very optimistic for targets or stops that would wipe the account.
This has lighted a pulb in my head ... But never found a trader who thinks this way.
So in short, find the HTF divergence and trade the very very small LTF with reasonable and modest targets.
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One important point though is to wait for "good correction and a breakout" in the very small structure like couple of waves down or up or something similar.
---------
My head is open again for trying divergence to see if I can use it to get this flexibility in my trading.
I am currently a 'mostly' if not fully PA trader. I pay a lot of attention to very small details here and there on different TFS when it comes to S/R/TLS/Patterns, Candles, etc..
However, I know that a flexibility is required. I have seen 'Divergence' traders who are more flexible than me with regard to their levels.
We all know that the market has tides and ripples and minute structures. Even Harmonics people give an explanation for why price stops a tad before previous peak/trough because of a certain harmonic ratio and so on.
Any way, the idea of working on very minute structures in tandem with bigger TFs was something I thought of a lot in the past. The idea is simply using the initial momentum on minute structure with the green light of divergence in HTFs. Never knew there was a book actually written about it.
For me Divergence in the past was one of the tools to confirm my trade but then I realised I don't really need it at all. and I kind of ditched it away.
But what if there are no clear levels (PA TLs, S/Rs, etc..), how to establish a bias? There are tons of divergences on very High Timeframes that do not really mature to what is anticipated. Ok, but we can still trade the very smaller structures that form without being very optimistic for targets or stops that would wipe the account.
This has lighted a pulb in my head ... But never found a trader who thinks this way.
So in short, find the HTF divergence and trade the very very small LTF with reasonable and modest targets.
-------
One important point though is to wait for "good correction and a breakout" in the very small structure like couple of waves down or up or something similar.
---------
My head is open again for trying divergence to see if I can use it to get this flexibility in my trading.
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