Is this a correct Lower high, Higher high set up ? and where is the best place to have a good entry point to sell in such case ? and why ? ( retracing from a resistance ? Macd cross ? or ...... ? ) Thx in advance
Is this a correct Lower high, Higher high set up ? and where is the best place to have a good entry point to sell in such case ? and why ? ( retracing from a resistance ? Macd cross ? or ...... ? ) Thx in advance
{quote} That picture is showing classic hidden divergence. http://www.forexfactory.com/attachme...5&d=1378924649 Regarding a good sell entry, look where price is in relation to past history in the chart below, it is currently in an untested area which hasn't been re-visited since it dropped --- those two lovely bearish spinners before that big drop. I'm looking at going short on this pair later on tonight. {image}
Thank you sir I'll go look for that term "hidden" since I don't know a lot yet since this is like the 4th week for me in the forex world 
.... But what do you think about the string sir in the 2nd post ? is it drawn correctly ? it's my first time to draw it after learning it's basics from a video and I'll really appreciate it if you take a look at it ... And for the target thing do you think that the first Low on the daily chart @ 150.44 could make a good tp area ? ... I know I'm asking a lot of questions 
but I know that you guys always would like to help Divergence is simply showing you that momentum of the trend is slowing down. This does NOT mean that price will reverse anytime soon...since even when sharp divergence occurs, a market can continue in the initial direction for hundreds of pips. That momentum can indeed pick up again. However, the presence of divergence should alert you that a trend change MIGHT occur. But you will ned to verify this through the breach of S/R or a trendline break. Also, in your first image, I would say that is a very tenuous example of weak divergence. The strongest...
.. So it's all about the momentum then 
.. I see that in the picture you're using the CCI oscillator, is it better to spot the divergence ? .. Beside Can't I looks for the momentum and check for the presence of a reversal candlestick pattern ( those small hammer and doji on the 4h chart and the Doji in the making on the daily chart ) beside that area of consecutive candles that make a resistance level on the 1h chart to confirm the entry instead of watching the price go down for that long in your example wasting all those dropped pips and widening my stop loss space and shrinking my profit !? 
{quote} 160.50 would be a safe SL in my opinion.
Man I'm here to learn from you guys so hit me with the charts 
... is that the reason why you think it's a good SL ? because it's the next high that happened back on 01/07/2009 ? 
{quote} Explanation ? chart ? anything
if you don't understand any of it, let me know
{quote} Here you go
Now I'm convinced so I'll go set it to 160.60 ( just added the spread ) for the 3 positions... btw, I had the honour of adding you into my buddies list if you don't mind {quote} It's all clear ... you're a good teacher man
Prior to taking a divergence signal you should see "hidden" divergence show itself first. 90% of trend show this. The hidden divergence is the first indication that the BIG boys are exiting the trend, and now selling into any higher tops. Who are they selling to? Us...the retail...the loser. The ones who think the trend is "going to the moon". Your initial daily chart shows higher lows on your MACD, while at the same time, the price is also making higher lows. This is telling you the trend is intact and will continue cycling upward. When the...
{quote} Excuse me. Maybe I'm a beginner so I don't get it. But what I have read earlier today in babypips school about the hidden divergence is a little bit different. So attaching a chart may help making things clear for me. Thanks in advance
{quote} I have uploaded a screen shot of the daily chart of GBP/JPY. I have put in the MACD that you used on your initial screen shot with what appear to be the same settings. (settings really don't matter that much when it comes to divergence). I have clearly marked the hidden divergence present in the last reversal from to short. Note that the hidden divergence preceded the "regular" divergence. It is this way in the vast majority of trends. Structurally, it is the foot print of larger players taking profits off the table and setting up the...
... Aside from that this is the hidden divergence I studied .. you know what, the only difference between the analysis I put earlier and yours has been said in a previous post by LizardGizzard when he told me " there are several swing hits and lows in between the two. In my book, I wouldn't consider that divergence at all " the two refers to the 2 highs I picked on the chart. And I drew them like this because that's how I learned it from an article I read the other day. But your explanation has definitely added to my sight and I'll look up the chart when I have the chance to open my laptop as I'm replying from my mobile phone now and I'll will definitely come back with questions so prepare yourself .... Thanks again man {quote} Just be aware that the monthly R2 pivot is 158.51 (basically the high) The weekly R1 pivot is 157.68 (might offer initial support and about 156.70 below that) Personally, I don't see divergence on daily but the candle(s) may be a bit bearish for now (I do see bearish divergence on the 1H but that can be short-lived) All the best in your journey.
... I'll look at the 1h chart whenever I get a chance to {quote} Thanks for the heads up
