I will discuss one of the methods of trading a divergence.
The main advantage of the divergence trading is that you are able to enter the market right at the beginning of the swing.
The rules to follow:
1. Spot a difference in a direction of momentum and price
2. Wait for a reversal pattern to complete
3. Enter the market in the direction of the momentum
TRADE: BEARISH BAT PATTERN
Looking at the NZD/CAD on the 1 Hour time
frame, waiting for a potential bearish Bat Pattern
to complete, for an opportunity to short this pair.
NOTE: These are potential trade opportunities. Please
re-analyse the trade before executing.
FX:EURCAD has been consumed by bearish momentum today and there is still potential to hop on that momentum to pick up some nice profits with minimal risk. Please follow the rules below for how to go about this trade and also please note the short summary below the trading rules that summarizes how this trade set up could be rendered invalid.
Please note the...
Let’s glimpse into the basics and do not forget to use these rules.
It’s proved - they do work!
1. Always work in the direction of the dominant trend
2. Find the strategy where you are most successful, namely the one that gives the minimum account drawdown
3. Reduce the number and size of transactions in case of losses, and vice versa
4. The main...
It's a good idea to come up with a systematic way of trading.
I learned a great deal from Tim West, I'm indebted to his teachings.
He taught me about the importance of risk management, and how it can trump trading accuracy in the long haul.
You can be profitable even with random entries, if your tp is bigger than your stop.
That made me think a lot, and I'd like...
US markets covered morning losses and closed well on highs. Tech sector and small cap companies continue to diverge from S&P500 and major cap Dow Jones. It makes some traders nervous, and some say it's time for caution but we will measure price action with levels and wil continue to follow our process and rules.
Market has switching gears every day, so we...