Introduction to technical analysis with divergence divergences - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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Introduction to technical analysis with divergence divergences

Hello Trader Technical Analysis 
Divergences divergences is a specialized concept in technical analysis trend. Understanding this simple, there are 2 types: One is Convergence and Divergence Second, you can associate it with 2 lines short and long term MA merge together is called convergent and when they start That apart, the divergence phenomenon.
Divergence is the advanced tools used to predict the trend continues or is about to reverse, the detailed explanation of the concepts, definitions, but found no significant divergences, as readers increasingly seen tangled up we go straight into using analytical and mostly how it deals with.

The types of divergence?

  1. Conveniently divergences (Regular): Appeared and entail trend reversals
  2. Negative divergences (Hidden): The trend will continue

The tools required to analyze the trends with divergences Divergence

  1. Interstitial lines Trendline: Free hand painting is the most standards - Review interstitial topic guide directly on MT4 Trendline
  2. Momentum Indicator: Stochastic or RSI Use or MACD, Stochastic user recommendations.

Tactical dealing with divergences and Trendline signal

This general part of Case Study actual transaction situation with divergences on Stochastic Signal.
Step 1: Wait for prices reach the trend line Trendline
The principle of divergence is the confrontation between two points high / low on the charts compared to the high point / low on tools Momentum (here using Stochastic). This explains a bit hard, observe the example below to better understand it.
Step 2: Look for signs divergence
Step 3: In the command in clearance of Trendline

Case Study 1. Divergence trend continues

Elephant tactic divergences -1
The chart above, the price you see Lower Highs creation, lower mean peak after peak before, HOWEVER, on Stochastic is the opposite - higher peak later! On a downward trend, the phenomenon known as negative divergences Divergence (Hidden), it signaled the downtrend will continue, so should SELL here.

Elephant tactic divergences -2
Trading results: Trends reduce crowding and SELL orders victory!
Case Study 2: Divergence trend reversal
The next case study on reversing the situation of divergence,  a Trend Trend terminate and start new. This can be dangerous because it can predict fairly accurately reversal, should incorporate other added elements to confirm a new trend actually began, many professional Trader waves were hunting island Medium-term way to "eat" a few hundred pips rather small likes surfing eaten several dozen pips :)
analyze trends inversely to the divergence
Step 1: Wait trend "ripen"
A Trend old when had 5 wavelengths according to Elliot and risk reversing many breaks Trendline
Step 2: Find positive divergence signal (Regular)
Step 3: Wait signal Candelstick reversal candlestick pattern.
Lower highs on price image creation, lower than the previous low of Day after engine Stochastic BUT on the other hand, after its bottom than the previous low  =>  reversing alarm, if you do not believe, and that trend is still dominant at least should stay alert, always put Stop Loss lest being gored ox gut tore 😀
In theory, such a sufficient condition of divergence upon already, trading strategies is to BUY a small order here, in the shadow Stoploss reversal candles around 20-30 pips depending on the time to wind surf or No. Thanks to the presence of a reversal candlestick pattern that we have more confidence in order BUY while showed no signs of reversal yet when we look at the price chart.
And here is the result ↓
analyze trends inversely to the divergence-2
Well, one spectacular reversal!
dealing with divergences - downtrend If following safety strategy, you can wait until the Breakout Trendline resistance in order to buy, who accepted the early testing on a small volume orders prior to BUY at bottom, if the forecast is right, "knock" stronger. This tactic was used when George Soros speculation on the currency market and the futures contract, his notion like a shopkeeper, with a new product, then enter a few lines on display whether expensive guest or not, if selling it to import more goods, not the end.
In Forex is similar, in the case of purchase orders with a small trials to explore the market, if you guessed correctly, the fierce attack. States after further post topic 9 note when using phasing to minimize signal interference.
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