Hidden divergence

You've seen that right ?
the kijun has stopped the price

That's what I am trying to find, a set of rules that would allow me not to think too much. I give some on my post #467. But despite all the rules, price reversed and hit my stop loss level. That's why I keep those levels tight. There was one thing I didn't consider, the reverse head and shoulder pattern. Never trade against those patterns.

Will look at it thank you

look interesting
The Euro Australian dollar
There is a hidden Divergence on the 1-day chart ,and also in the four-hour chart.
what do you say guys?

also this EURCAD 4H HD look interesting

Hi,

I can give you my thoughts about it. I am not used to trade with peaks so far apart. I usually look at peaks just besides one another. On the 4HR charts, I would be uncomfortable with your analysis. When there are many peaks like that in the middle of the divergence line, I get a better picture on a higher timeframe. To me, the Hidden divergence signs are more clear on the daily TF. For EURAUD, the pattern is not mature yet. I would wait for signs of reversal, but for now it is a potential trade. For EURCAD, the pattern is there, but not clear enough. We can hardly recognize the first peak on the daily TF. It is more reassuring when the divergence pattern is clear on both Stochastics and OSMA. That's the way I see it.

I use Divergence as an indicator that 'something is about to happen'. When I am in a trade and divergence appears on an indicator ( I use ADX 14/DMI as a pretty solid indicator on minimum 4hour chart, ideally daily) ...it makes me sit up and take notice. I prefer it when I have price action cluster points mapped and Divergence appears to support this. Divergence in my opinion is something that is incredibly useful in identifying that something is about to happen. It takes a little time to hone in on the opportunities, and even when you have missed the divergence as a signal, it can still be used to confirm/rebut a trade idea that you had, or make you pay closer attention to a trade that you are already in. It is not something that I would ignore, it is too useful a tool to just ignore. the screenshot attached shows a pretty good example of how divergence is an indicator of 'something is going to happen'. It is up to the trader to decide what they will do with the information. For 6 months the GBP/USD was showing divergence ( the minus DMI, the red dotted line) was moving down, and so was the price, this is telling me that something is going to happen, the pair was not sure if the downtrend was to continue, so clearly the chart is telling us to pay attention. A brave trader could have kept an existing trade open until the divergence was confirmed, this could have cost them 500 pips, likewise an equally brave trader could have closed an existing trade and tried to re-enter when the divergence was either confirmed or denied. In this case it was denied initially, with the pair continuing a further 700 (approx) pips downwards before the pair found strong support and confirmed the divergence signal. I find the divergence signal confirms a trade idea or price idea that I have, it is not to be used alone, confirmation comes from knowing the existing areas of support/resistance. It gives me a huge boost of confidence to confirm something that my price action research has identified.

Yes,the Sup/Res is more important than the Diversion IMHO

This one playing along nicely , for now anyway

I'm afraid it didn't work out this time. Price is testing Kijun for a second time. The HD pattern is no longer valid.

Hidden divergence setting up on AUDCAD H4. Looks like she may take another dip to me.

Let see

I'd just like to say that this is the best hidden divergence thread that I have came across. I was already familiar with regular divergence, but hidden was one that I couldn't seem to understand. Thank you for the countless examples! It will work perfectly with my strategy. Divergence is great when there are multiple confluences and can be extremely profitable.

PATIENCE.....

Usd cad weekly

i like hidden divergence ; In my opinion, it's one of, if not the most powerful signal in trading.

hi dear dany
can you share your temp? and which one is better osma or stoch or both?
regard

I LOOK AT BOTH

Observing quietly...

Yep but .....we are under the kijun ; wait the retracement