This is a good opportunity to test this trading system real-time on gold (example 3). After a clear downtrend price formed the first higher high (convergence). We confirm it on oscillator and mark the level of convergence as our target. I recommended in this trading system a pullback to the 0.61 fib AT LEAST Then we switch to the next lower TF (in this case H4) We see two bullish divergences already in play (regular and extreme divergence). We add two additional level of S/R, not too far, not too close. Those will be our entries just in case price moves lower. Stop loss below last level of S/R (the same for all entries) Lets see how this works. Regards. *****************DISCLAMER******************************************************************** Always do your own analysis before opening a trade. Any respectful and constructive ideas are welcome (agree or disagree). Follow me on Twitter for updates: @fxtrader2000
Comments
moorekapital
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FullTimeTrader
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Hello, thanks for sharing. This system works alone. Its true we have a red candle on D1 chart and price could move lower. Thats why on H4 chart we have two additional entries. That red bar could turn green between the levels shown on my H4 chart.
moorekapital
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You're right, Sir
Rayge
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bat pattern
FullTimeTrader
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Hello, nice bat pattern as confirmation for a bullish bias. In this post im testing the convergence-divergence setup. The difference is that the target is the D1 level of convergence AT LEAST. Trading the bat we have other targets. Anyway, both setups are bullish. Regards.
Don_Corleone
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This bat is not valid
Rayge
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hi, why?
Don_Corleone
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Cuz your AB leg did not touch 38.2% retracement and candle closed above it