Hello all,
Analysis earlier this week proved successful with two solid shorts. To be honest, there's lots of lines, patterns etc but the majority of my decisions rely on divergence, bullish and bearish. I use these to determine when to close a trade and when to enter. I really like using the 4hr chart to enter trades. Using divergence on the 30min or smaller time frames doesn't always prove as powerful or successful. Wait until you confirm divergence on a 4hr candle before entering.
Use the daily and weekly to help confirm your view and also determine how long you should stay in the trade. For example: you can find 30min bullish divergence but if there is no indication on the 4 hr, you might expect a quick correction to scalp on but the overall longer term still has more downward movement. In this case you would look for a quick exit. Apply this to all time frames and you'll see how important divergence is.
Analysis earlier this week proved successful with two solid shorts. To be honest, there's lots of lines, patterns etc but the majority of my decisions rely on divergence, bullish and bearish. I use these to determine when to close a trade and when to enter. I really like using the 4hr chart to enter trades. Using divergence on the 30min or smaller time frames doesn't always prove as powerful or successful. Wait until you confirm divergence on a 4hr candle before entering.
Use the daily and weekly to help confirm your view and also determine how long you should stay in the trade. For example: you can find 30min bullish divergence but if there is no indication on the 4 hr, you might expect a quick correction to scalp on but the overall longer term still has more downward movement. In this case you would look for a quick exit. Apply this to all time frames and you'll see how important divergence is.
