Divergence Question: What would you do? | Forex Factory

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Divergence Question: What would you do?

  • #1
  • First Post: Feb 22, 2014 6:21am Feb 22, 2014 6:21am
Dear fellow members: Sorry of my stupid question.

If in a case where Regular Divergence and Hidden Divergence happen together (possible?), what signal would you take?
Please see image...
Attached Image (click to enlarge)
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  • #2
  • Feb 22, 2014 8:15am Feb 22, 2014 8:15am
Both.
  • #3
  • Feb 22, 2014 8:20am Feb 22, 2014 8:20am
No question is stupid. Not knowing and not asking, that is stupid.

Both RD and HD happening together on the same TF is not possible. Notice for instance in your chart that the bullish HD occurred several candles after the bearish RD. Not on the same candle.

I'd take HD over RD any day, because HD follows the 'trend'. HD offers the better R:R, and ultimately is a lot more forgiving when it doesn't go as planned.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #4
  • Feb 22, 2014 8:58am Feb 22, 2014 8:58am
Quoting vox dei
No question is stupid. Not knowing and not asking, that is stupid. Both RD and HD happening together on the same TF is not possible. Notice for instance in your chart that the bullish HD occurred several candles after the bearish RD. Not on the same candle. I'd take HD over RD any day, because HD follows the 'trend'. HD offers the better R:R, and ultimately is a lot more forgiving when it doesn't go as planned.
Thanks Vox!I just see that the HD came after RD!
  • #5
  • Feb 24, 2014 5:48am Feb 24, 2014 5:48am
however, I still wonder what is the best entry method?
Anyone trade successfully with HD RD?
  • #6
  • Last Post: Feb 24, 2014 7:36am Feb 24, 2014 7:36am
English not being my native language, I think I misunderstood the principe of divergence.
I thought that a divergence was, based on an indicator (cci in this case), the fact that the price moved for example, more than it did for the previous and same kind of move on the given indicator.

Now for the screenshot given in this topic, I would have said that the bearish divergence was actually a bullish one, because for really small movement on the indicator, the price did continue to climb quite a lot.

That's what made sense to me but I think I am wrong, could somebody please correct me ?
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