Hidden divergence

AUS200 H4

Divergence is nice to use with small settings to help in deciding to enter a trade or stay on the sideline and watch.

Here is a break out at the horizontal line of a consolidation. Have a look at the behaviour of MACD 5,13,1 and stoc 5,3,3.

Because of their looks, I have not entered. I have this instrument on my watch list since Friday.

Will it be a false break? or will continue up? We will see. We do not fortune tell. We use common sense with the visual clues we have.

On weekly, we are very bullish on an S/r level and we had a strong bullish Morning Stra pattern.

We will see if there is a deeper correction on H4 before resuming the HTF bullish trend or we would see a reversal. The weekly/Daily TFs are very bullish ATM and we need very strong reversal signs to change the bias from bullish to bearish.

On the Monthly TF, we bounced off a resistance as price touched a previous top in Oct. 2007. We had a bearish engulfing pattern.

Another HD pattern developing on the Weekly chart with regular divergence on the Daily. Waiting for entry signals.

Also a HD pattern on the GBPCAD Weekly chart. Price will have to cross the bottom line of the channel for entry.

Another interesting situation. HD pattern on the Daily, regular divergence on the 4HR. Waiting for price to cross the trendline and MACD to cross the zero line.

One pair to watch today.

As expected, the pair gave a few pips, around 20 so far.

Hd pattern on the Weekly chart and entry on the Daily. After the entry signal, I switched to the 2HR chart for additionnal entries according to a cost averaging approach. My first trade on that timeframe gave 22 pips.

Nicely done sir

hello guys,

took a EJ H1 trade for 1:1 earlier. I am an intraday trader. Am using rsi instead of macd and stochs here.

RSI also works as well... It's just stick to what works best for you.

yes i agree. just stick to what works for yourself. In my case, i only trade HD because i got burnt many times trying to find tops and bottoms with regular divergence. There's really no way to know where is the top and bottom. Sometimes they work, but most of the times it will go take out your stops and reverse. Which will be very frustrating and will damage your mindset of seeing the price just took your stop and reverse. Now i am only trading HD and range divergence.

I strongly suggest you guys trade only HD too. Also, this thread is mostly about HD, no? This is my first post here in this thread. Will contribute more here if i have the time.

Nice tip from an experienced trader!
We hope to see more posts from you sir!

Watching Silver closely.

Here we go:

False breakout- nice entry using H4:

I am going to sell on close of the day.

The only thing I worry about this trade is: the rebound is very strong (green candels are solid). Sometimes it shows trent changing...

That's also a very good thing to look out for.. when making entry! Nice one vital

can anyone help me to avoid false divergence patterns ...? I often find strong regular divergence patterns, and usually I will start an open position when the candle crosses the MA line, but for no apparent reason and makes me confused that the candle returns to the previous direction and past the highest candle from the previous regular divergence, is there anyone who can help me to avoid this ...?

Posting chart examples would help.

like the picture I showed, there is a regular divergence, but why does the price go back up ...? whereas after the regular divergence appeared I did not find any further divergence patterns as a sign that the next trend was bullies