Something that happened during the holidays
I didn't took this trade but our set up occurred again after the previous one almost back to back
This happens quite often in the CHF pairs
So because there is not clear support area i was going to take a 30 pips potential loss in this one
for 2 reasons
1) A lot of ...
This is what we are waiting for now to happen
RSI Divergence with the price
-The RSI has to go overbought above 80 at the initial impulse leg
-And then at the second HHC we need to see divergence but the RSI cannot be overbought above 80 at the resistance area
And the MACD (blue line) stay flat or start having ...
Weell... As you can see our divergence pattern occurred also in the US Dollar Index.
The think is that also appeared in Silver and don't forget those two instruments have a negative correlation.
So if both diverge the same time... I don't know :P But i think its more highly likely that we are going to see a ...
Our Divergence set up occurred in the 4h time frame
We have 2 valid entry points because around the support area both legs after the impulsive leg did close at the same or lower level of "X" LLC with the RSI remaining above the 20 level and the MACD with a positive angle
I didn't took this trade because i saw it later on when the r/r wasn't appropriate for trading
So my divergence set up occurred again in the 4H time frame and has been confirmed in the 2H time frame and the 5 min