Thanks Ali, I’ll definitely check this out!
Matty
So I started looking at the thread early last year (March maybe?) and then really started trading the concepts, in demo of course, around the end of the summer. Went live in the fall. Just take your time and learn the concepts inside and out as best as you can (as I am still definitely trying to do). They’re ridiculously powerful if applied correctly.
Matty
Yes I stress the importance of not spending too much time in the charts , ONCE you understand what you are looking for. However, I also state that early on you will require many many… yes MANY hours of Price Action Study… which doesn’t equate to Trading. You study how Price behaves in Kill Zones, Key S&R on Report Days, ADR influence… these things will require time and exposure for your trust to take shape.
Everything in balance…
[B]GLGT [/B]:57:
50% taken off at 1.3115, stop now at break even.
Leaving remaining 50% to either get stopped out at break even or take profit at 1.3050 for 100pips.
Time will tell…
The way I understand it, you need to compare highs in one chart with highs in another, same for lows.
I don’t think that’s what you are doing.
Looks like you are comparing lows in the one chart with highs in the other.
@pipjoker, I don’t understand the chart. Aren’t those mirror images of each other?
I’m not entirely sure about divergence myself but I’ve always thought that the first pair that breaks market flow signals the other pair will turn soon too. For example if fiber and cable have been moving up and cable makes a lh when fiber makes a hh, then fiber will soon be following cable.
Pipjoker has it right. That is divergence. The problem is USDX and EU are inversely reltaed.
I would be easier in my opinion to spot and draw trendlines on divergences if you could mirror the USDX. The overlay indicator that has been shared on this forum several times has an option to display the overlay as a mirror. Basically, if USDX makes a low, then a lower low. we would expect EU to make a high, then higher high. mirroring the USDX on an EU chart would invert the USDX so the price scale would show higher prices at the bottom of the chart, so we could plot higher highs and lower lows together. If you don’t mirror the USDX, then it looks strange.
Not sure if this is making sense…but I think pip joker has spotted divergence correctly, but it goes against our normal charting techniques because it’s inversely correlated pair, not a correlated pair.
That the correct understanding for highly correlated pairs. The challenge is EU and USDX are inversely correlated pairs. So the normal rules we use have to be modified.
Quick & Dirty SMT Divergence Summary:
Prerequisite: have a defined S/R level from your higher TF analysis
If looking at Support: watch for either Fiber/Cable to make a lower low, while its “sister pair” makes a higher low
If looking at Resistance: watch for either Fiber/Cable to make a higher high, while its “sister pair” makes a lower high
*I did not include USDX comparison, but I believe you could also look at Fiber vs. USDX, or Cable vs. USDX
and if you do see the Divergence at your pre-defined S/R level, this gives you insight into whether or not smart money is actively accumulating/distrubuting your level. It is just ONE confluence of events that merely stacks the odds in your favour. [B]It is NOT the complete analysis!!![/B]
hahaha I have been wandering what the mirror box was for on the indicator. Have been afraid to check the box thinking it would show my ugly face on the screen like a mirror and thats not good for trading. I am already afraid to take a trade no need to make it worse.
In the same trade. Although entered later than you at NYO on an OTE of a 30 pip swing.
Like you, I’ve closed half of my position. And SL at breakeven.
I’m trading this as a swing trade short. We have had nearly 2 weeks of straight up movement. We are at a SR level which has been a turning point for major retracements before. We had a gravestone doji form yesterday, as well as a spinning top 2 days ago. Trading this as we put in a swing high yesterday.
Also, There is some type 2 bearish divergence on the shot term downtrend from yesterdays high to todays high. And price fell off.
I intend to hold to the 1.2920 level at this point with the remaining half of my position. This is the level where the low was put in on Wed. Depending on how price moves down (hopefully?), I might close some and hold the rest for 1.2880. At that point, we would be in an OTE to go long and market structure would support that as a longer term swing trade higher.
Go ahead and click the mirroring option. It doesn’t use your webcam for anything. 
Wandering is what I was doing trading until I found this thread. Sometimes I “wonder” what the heck I am doing.
I hope this picture posts…found it on facebook
If you were on the Livestream last night, you forgot to add the Bobcat.
And the kids play toys.
And so we break $1.32 - and, if I’m not mistaken, a reasonably long term swing high 
Albeit by 1 pip 
EDIT: Make that more than just 1…
Intermediate term market flow = BULLISH officially
Thanks a lot! now I can continue with my plan;)
Didn’t realise that was the USDX…carry on
Sorry about that
Guys, I asked ICT in an email about this and I thought I would post it on here also. We have had a run up the last 2 weeks ending in a short term high form. But, the COT data for the last 2 weeks has been increasing. I ask myself "SELF "why would the commercials still be taking long positions while the market is making new highs? Well if I am wrong so be it. I am am not revising this post. They know something we don’t. Yes they trade large amounts of cash an with no margin to worry about because they know where the market is going. Whey would the commercials increase these positions and run up the market to lose money. I don’t think so. If what has happened to be true then for them to make money the previous low has to be taken out or the net long contracts will have to be held for a couple of years so they can profit. I do not think the later is the case. They want our a$$ out of the market as well as the large speculators. So, if I am wrong ICT please explain this to everyone.