Anybody have much success trading divergence.
Daily Divergence on the USDCAD and the trend lind is weaker.
Daily Divergence on the USDCAD and the trend lind is weaker.
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Divergence and hidden Divergence 122 replies
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DislikedThe problem I have with divergence is that it is a strong trend countertrend signal that usually has bad timing. The truth behind my bias though is this, Divergence is not complete without a good analysis on time cycles that tie in with divergence to give better accuracy and reduce risk. Trading divergence is a dangerous practice without a good understanding of the relevent time cycle associated with the pair.Ignored
DislikedHI
THERE IS SOME THING WRONG WITH YOUR CHART MAYBE YOUR DIVERGENCE IS NOT CORRECT
YOU CAN'T DRAW IT LIKE THAT YOU
have look at divergence roulsIgnored
DislikedThis is not a divergence yet, i think it will be but it's not yet. If you take a look at macd you will see that it hasn't return yet. So teoreticaly it still has chances to go higher. I thas to make a bar lower than the previous one, and as i can see the last bar in macd is the highest one, so no peak yet.Ignored
DislikedI see what you are saying in regards to the macd not returning but what do you mean by hidden divergence?Ignored
DislikedYour second condition for long and short is hidden divergence, and it's powerful. Hidden divergence means in a down trend you look at the highs instead of lows and in an uptrend you look at the lows instead of highs.
yes you are absolutely right sorry i forgot to mention this
Regular divergence in a strong trend is useless.
is useless till that trend become broken
A hidden divergence in a strong trend has a lot of chances to succeed, corelated with other signals.
yes because it tell you that correction has end
Take a look at aud jpy on daily chart. Strong uptrend and bullish hidden divergence
that is my favorite pattern
.Ignored
DislikedRegular divergence:
Bearish:
Price make higher highs but macd makes lower highs.
Bullish:
Price makes lower lows but macd makes higher lows.
Hidden divergence:
Bearish:
In a downtrend, price makes lower highs and macd makes higher highs
Bullish:
In an uptrend, price makes higher lows, macd makes lower lows.
So if you look at my example we have 2 bullish hidden divergence. Price makes higher lows in an uptrend and macd makes lower lows.
So a big difference is where you look. In an uptrend for regular divergence you look at highs, but for hidden divergence you look at lows. In a down trend for regular divergence you look at lows, in hidden divergence you look at highs.
Another big difference is that the regular divergence is a trend reversal and the hidden divergence is a trend continuation pattern.Ignored