hi friends…it is pretty good to find divergence…
I hope it will help you…all the best…
Before I answer this are you looking to go long or short here?
isn’t it going up instead for some correction??
I believe that what you mean, isn’t it!!
got it right then
Yes I dont care about the one hour as it is showing the same as the 4hr. But if we look at the 4hr it is retesting the previous high which is good. The is hidden bullish divergence. Looks good but thats why I asked the OP was he long or short. Sure he spotted divergence but being able to recognize divergence is nothing unless you know what to do with it. All to often I see people blindly follow there indicator where trading divergence. Since the stoxh is making a lower low then pirce must be getting ready to go down. Then they jump on a short. Wrong price is hitting support and the stoch is signaling price has more steam left to go up. Me personally though I would sit that one out all together as I would need some candle confirmation on that support to give me enough confluence to buy it. Then I would also have to see other factors such as where would my stop go and where would my target be? Now is this trade even worth it. So even though that is a very good job spotting divergence it does not mean its a valid trade even if price does push up.
sorry for not mention for the long or short…i enter the long and made a profit of 50 pips with that deal
There were other reasons too, why your trade worked out, like it’s Fib level, you need to take these into account to have a real chance of trading a divergence strategy successfully.
thank u friend…hmmm sir.
i think i need to get more than what i am now…with the concern of people …hmmm friends like you …
i can gain some knowledge…thank u very much for ur concern…
This WILL help How Pros Use Indicators - Inner Circle Trader - YouTube
thank u friend…
You drew your divergence on the first chart in a random way.
It is incorrect or at least an unconventional way to draw a divergence.
If you found a consistent way to draw it as such and make money with it, then go ahead.
It is important that you learn how read divergence signals. First what does divergence mean? Just that the current price trend is running out of steam. In this case u’d create trade plans based on reversal patterns, moving average crossovers, or other indicators to consider a trade in the opposite direction. It may not happen right away, but divergence can be a powerfull hint that the market is changing.
I see divergence as a sign that fewer and fewer traders are un the trend. No one is trading against the trend- yet but fewer and fewer traders are in the trend. Id guess that traders are getting nervous and slowly fading out of their trades.