Here are videos on Divergence pattern trading I had fun to watch. Hoping the same for you:
Preparing for next week, I try to anticipate likely moves of currencies based on their strength and weakness. I use two moving averages, one for long term picture and a second one for mid term picture.
Bullish currency
JPY
Neutral currencies
CAD
USD
CHF
NZD
Bearish currencies
EUR
GBP
I will therefore pay special attention for shorting EURJPY and GBPJPY on the 4HR chart. But I will do what price will tell me.
The only trade I took in the last two weeks, +57 pips on EURGBP 4HR timeframe following a Hidden divergence pattern on the Daily chart. Note that price is developing above the 100 EMA and 1000EMA on three successive timeframes. A good way to confirm the trend.
Made a trade this week and it paid off +43 pips. A Hidden Divergence pattern spotted on the 4HR chart and entry signal on the 1HR timeframe. I settled for a RR=1:1.
Daily AUDNZD where a bullish Trading Zone is starting (vertical line). I am going to monitor the 2 HR chart and check entry signals whenever MACD crosses the 0 line upward. We did not have a Hidden Divergence pattern on the Daily chart, but a Regular one is also a strong heads up signal.
Similar situation with EURCHF. A bullish Trading Zone has just started and I will check the MACD zero line bullish crosses on the 1 HR chart. (I changed the settings to 16-34-9 to simulate a 2 HR chart). On entries, I will put my stop loss to the last swing low and aim a RR=1:1, bringing the stop loss to breakeven when price reaches half the risk in profit.
So far I reached my goal this week.
AUDUSD. A +45 pip trade.
CADCHF. A +55 pip trade.
A clear Hidden Divergence pattern on both cases using a RR=1:1 on the 4 HR chart, one of my favorite.
I entered two trades this week using Hidden Divergence. I use another system, maybe I will expose it in another thread some day. The two trades were winning ones.
USDJPY 1HR: +26 pips.
USDCAD 4 HR: +31 pips.
