How is it if there be a low risk way to sell near the top or buy
near the bottom of a trend?
How is it if there be already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains, a.k.a your potential Aston Martin down payment, vanish before your eyes because your trade reverses direction?
What will be it if you believe a currency pair will continue to fall but would like to short at a better price or a less risky entry?
Well guess what? There is a way! It’s called divergence trading.
Actually, divergence can be visualized by comparing price action and the movement of an indicator. It doesn’t really matter what indicator you use. You may use RSI, MACD, the stochastic, CCI, etc.
It is an important thing that, divergences is the thing you use them as a leading indicator, and after some practice it’s not too difficult to spot.
If you traded properly, you can be consistently profitable with divergences. The best thing about divergences is that you’re usually buying near the bottom or selling near the top. This makes the risk on your trades are very small relative to your potential reward.
Cha-ching!
Trading Divergences
Let us think “higher highs” and “lower lows”.
Price and momentum normally move hand in hand like Hansel and Gretel, Ryu and Ken, Batman and Robin, Jay Z and Beyonce, Serena and Venus Williams, salt and pepper…You get the point.
When, price is making higher highs, the oscillator should also be making higher highs. If price is making lower lows, the oscillator should also be making lower lows.
If they are NOT, that refers price and the oscillator are diverging from each other. And thus, it’s called “divergence.”
The DIVERGENCE TRADING is a great tool to have in your toolbox because divergences signal to you that something fishy is going on and that you should pay closer attention.
By the usage of the divergence, trading can be useful in spotting a weakening trend or reversal in momentum. Sometimes you can even use it as a signal for a trend to continue!
There are TWO types of divergence:
In the grade, we will teach you how to spot these divergences and how to trade them. We’ll even have a sweet surprise for you at last.
How is it if there be already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains, a.k.a your potential Aston Martin down payment, vanish before your eyes because your trade reverses direction?
What will be it if you believe a currency pair will continue to fall but would like to short at a better price or a less risky entry?
Well guess what? There is a way! It’s called divergence trading.
Actually, divergence can be visualized by comparing price action and the movement of an indicator. It doesn’t really matter what indicator you use. You may use RSI, MACD, the stochastic, CCI, etc.
It is an important thing that, divergences is the thing you use them as a leading indicator, and after some practice it’s not too difficult to spot.
If you traded properly, you can be consistently profitable with divergences. The best thing about divergences is that you’re usually buying near the bottom or selling near the top. This makes the risk on your trades are very small relative to your potential reward.
Cha-ching!
Trading Divergences
Let us think “higher highs” and “lower lows”.Price and momentum normally move hand in hand like Hansel and Gretel, Ryu and Ken, Batman and Robin, Jay Z and Beyonce, Serena and Venus Williams, salt and pepper…You get the point.
When, price is making higher highs, the oscillator should also be making higher highs. If price is making lower lows, the oscillator should also be making lower lows.
If they are NOT, that refers price and the oscillator are diverging from each other. And thus, it’s called “divergence.”
The DIVERGENCE TRADING is a great tool to have in your toolbox because divergences signal to you that something fishy is going on and that you should pay closer attention.
By the usage of the divergence, trading can be useful in spotting a weakening trend or reversal in momentum. Sometimes you can even use it as a signal for a trend to continue!
There are TWO types of divergence:
a.
Regular
divergence
- Hidden divergence
In the grade, we will teach you how to spot these divergences and how to trade them. We’ll even have a sweet surprise for you at last.
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