Cable Update (GBPUSD)
There it is. That's the ltf divergence coming into play & how it could be used to exit trades. Once the divergence triggers, there is a good chance that price will challenge the ltl & break it. That happens, cable could be back at 5100. Let's see how this goes
here's my take on divergences bro...
divergence is an interesting concept in and of itself...but the problem with them is that you never know if the indicator is right or the price that's building it....in the long-run that is....
erm .. there are no problems in the long run bro. I've used it on very high timeframes with a lot of success. Even the current bull run on cable was quite easily identified with the help of the massive divergence building up on the W1 many weeks ago (attached charts below).
But maybe it's not for everyone, but this is definitely one of the most useful tool for me
original charts:
1. http://www.forexfactory.com/showpost...postcount=7455
erm .. there are no problems in the long run bro. I've used it on very high timeframes with a lot of success. Even the current bull run on cable was quite easily identified with the help of the massive divergence building up on the W1 many weeks ago (attached charts below).
But maybe it's not for everyone, but this is definitely one of the most useful tool for me
There it is. That's the ltf divergence coming into play & how it could be used to exit trades. Once the divergence triggers, there is a good chance that price will challenge the ltl & break it. That happens, cable could be back at 5100. Let's see how this goes
probability of divergence playing out with correct signal is very likely but at the same time aint 100% like everything..so long as u treat it as a probability it all good..
put everything on the line just because of it..could lead to account blow and i talking blow with boom!! at the end
you're right, it is not 100%, but divergences leads, so the probability of success is much higher.
And divergences that does not play out don't lead to account to blow bro! you know that
yes u right..basically the best signal one can ask for from a friggin indicator Hi guys,
I've not posted here before, lurked around a bit but thought it's time to brave the waters & post
so this ambiguity is where I see the problem...which to trust?
yes there is a divergence to be seen but do I trust what the price is saying (in this case 5M UP) or the indicator( down)...
so ultimately it's destined to confuse....
this is my experience with them...
apparently you have a more positive experience...if you don't mind me asking bro....what approach do you take to prevent the inevitable confusion?
I have used the 5M divergence to exit trades as well. It can be a very useful tool for that.
thought you trade the m1 my friend. triple divergence on the rsi16 triggered off the 64 low to the pip
both bro. when price & the osc is moving apart from one another it creates a divergence. It means that the prevailing trend is going to lose steam. So if you're already sitting comfortably in profit, once you spot the divergence you can start to contemplate what you are going to do, ie move stops or clear positions etc. It does not necessarily mean that there will be a full blown reversal once the divergence is spotted & later triggered, could just be a retrace. In any case, like how I traded today, it gave me a few opportunities to exit positions...
well...if they move apart could also mean the price has something to say as well ... the move could be accelerating instead of slowing down....
thanks for the explanation bro....
That's true, that's why I said "the prevailing trend is going to lose steam"
Could well send price slightly higher, but the norm is such a move is not sustainable. Buys you time to either get out swiftly or lock some profit in
You're welcome brother
right i'm off, catch you tomorrow. Good luck everyone!
