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CoffeeshopCrypto
Dec 21, 2023 5:10 PM

How to Confirm a Divergence Education

BTCUSDT Perpetual ContractBybit

Description

I get a lot of messages from you guys talking about how #diivergences seem to play out or not get initiated or that you're having problems entering A #divergence trade.

In this video I'm presenting you a reminder of one of the steps you need to use and it is the the confirmation step that you need to use for confirming whether a divergence is actually going to start going in your favor.

By that I mean that you have already found the divergence and you're simply waiting to enter on the trade because as you should know by now just because you see a divergence doesn't mean it triggers you to start trading in a direction.

Finding the divergence is only step one but finding the entry is based off of the structure in price action that I have outlined in this video idea.

In this video I'm simply using the RSI to find a bullish divergence based off of the difference in bearish price action and you can see clearly how I implement drawing a area around the start of the divergence and wait for price to reach that area. If price never reaches that area then I do not trade bullish according to the bullish divergence instead you simply ignore the divergence and carry on with the rest of your #priceaction #trading.
Comments
ADATARA
Good Reminder!
CoffeeshopCrypto
@ADATARA, unfortunatly it looks like for some reason the TradingView app cut the end of the video off. Not sure why it did but i didnt stop recording until i was done. Very odd
Vartlow_S
Divergence Scaner 3D Dynamic_T
It is a dynamic 3D scanner for identifying positive and negative divergences in 10 indicators.
we think that the error in detecting the divergence in this indicator is below 1% and also the error in finding the divergence is below 3%.
This can be said. It is a very good implementation. You can experience it in back test and forward test.
CoffeeshopCrypto
@Vartlow_S, im sorry is there something you wanted me to do here? did you want me to test out this divergence indicator?
behdark
It was one of the best analyzes I have seen in a while
CoffeeshopCrypto
@behdark, Thanks buddy
The_Masked_Trader2023
I don't know if this is good or bad to put myself in a box but I think it's safe to say I fall in that classification of a divergence trader. thanks for the reminder.
CoffeeshopCrypto
@The_Masked_Trader2023, i find myself doing the same thing more often than not. which is probably why ive developed such a good #divergence #tradingstrategy
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