Your charts make my brain hurt.
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I never traded that divergences anyway, it was just “loud thinking” because it fell in my eyes-but on the second chart i think the divergence is clear?
Although I don;t use divergence in trading decisions, I am not surprised to hear you are seeing this in the am. I have been trialling London opening range break-outs for coming up to 2 months, and contrary to their historical performances, they are now not working well at all. Prices often start to move well at the open but usually fail to follow through. Reversals in the opposite direction also lack energy right now compared with previous calendar periods.
However, looking at the wider picture, this is unsurprising. The last weekly bar of most of the 28 major forex pairs overlaps with the ranges of multiple preceding weekly bars. I generally look back as far as 3 months when looking at this metric and in more than half of the 28 charts, the total overlap is 10 weeks or more. This represents exceptionally stagnant market activity, so it would be no surprise if almost every morning price move turns out very quickly to be a false one.
Why is this happening? Brexit.
Same here; even I don’t know how traders choose a entry point by using so many of indicators, since so many reverse directions.
Well, my trading this morning was not based on this divergence constellation, the reasons for my entry points (in general) are a certain combination of some indicators , (i understand that this looks a little bit confusing on the screen)
But back to the divergence-pattern: the second screenshot would have rewarded gains if someone had sold in time , after he observed the lower highs of stochastic
Only based on trading indicator? No chart analysis?
Of course I also look at the charts concerning mainly support/resistance areas, so if the indicators for example say " buy" but the price is prior to a resistance line I skip the signal. But I am also warned if there ocure triangles or wedges which neutralise the indicators signals- also multiple time frame analysis is vital, especially indicators on M1 and M5 have to “say the same”, all in all you have to be totally awake to trade that way
Thank you for the thread! It was helpful for me!
(This answer is for tommor concerning brexit price moves in the morning but the direrct answer link did not work)
That’s an interesting observation- so if these reversals happen regularly now because of the circumstances you mentioned it could offer profitable trades during the first minutes after London opening- I have an eye on it
Not right now. Neither the primary / break-out moves are following through and neither are the secondary / reversal moves. Best to trade really small for practice until the Brexit fiasco is dead and buried.
your chart is very awesome, making me dizzy.
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That’s okay-i want to keep details of my secrets for myself anyway😉
That’s really great; I also consider support/resistant levels as my main tool (technical tool actually).
If you make combinations with other indicators this really works- thanks to the school of pips ology trading began to improve because one main point of their learning material is, that you have to create combinations of several items to generate a valid signal.So it’s not enough to trade the brakeout or bounce near a line, also other signals should be noticed which confirm (or not) the brakeout. In my case it’s vice versa.
Why you added the external link? What’s your intention?
I did not attache a link- I don’t know why this happens
Add a space before the Word “so”. Then it will be normal.
i see, thanks!
Always welcome mate! Have a great week.
It could be but you have to test it on history to see if such behavior preceded to some predictable move. I also use this EA with Hotforex and I think it’s a solid signal for selling the pair.