FXkred's RH+ (positive) system

Agressive trade against trend by an BBMACD divergence

I don't understand that divergence, aren't the lows lower?

What I am missing?

On the BBMACD there are many types of divergences.

This is a so called retracement divergence. (The price pulls back more then the dots of BBMACD.

Study the divergences:

Ordinary-> negative-bearish,positive-bullish, hidden or retracement. Many valuable information.
Then it have to reconcile between timeframes. Not so easy, but extremely good results.

Thanks.

I give you another example of negative divergence.
(The BBACD dots runs more then the price.)

See the point of 'A' and connect to it the point of C of BBMACD dots.

Then wait until the price goes near double top (point B). The BBMACD dots run higher then the (point d) then the price.

Most of the traders says : wow, the previous top was broke up, and lets jump into long trade!

But , there is a hidden divergence, which means the price have to pullback downstairs. You dont know the quantity of pullback, but have to expect some pullback. Then it makes an lower high peaks, close under the EMA34, so you have a good entry point for SHORT and stop level, Target is the previous low. So you have at least 1:2 RR.

( And for the advanced traders there is an Elliot wave 5th wave expected, so another reason for short, but it is another story ).

And of course it is a SCALP trade, not expecting more then a few pips.

Good video about divergencies.

thank's for this video

Thanks for the video.

oops, I got the system of another version. It is the right original system what Raghee wrote.

And can be buy by discount: http://www.magicbreakout.com/plus.php.

This is the market, where everybody respects the others knowledge