It's amazing what different traders see. I see a liquidity grab with a reversal to the upside. This may actually be a continuation on a higher with this being a pullback. At key levels look for grabs before reversals. Statistically it's a major confluence and helps a lot. There are many strategies based on this.
Divergence trading is VERY underrated and can consist of your entire trading strategy! I use it primarily and what is nice about it is that it tends to line up with EMAs, trends, swings, retracements, and ranges quite well which means it tends to work well with analyzing market structure along with support and resistance. I find it most effective on daily time frames for huge moves in forex! One thing to watch out for is when your oscillator hangs out in overbought or oversold areas for long times... this reflects you are in a trend and you should consider only trading pullbacks to your EMA. When a pullback or retracement becomes unhealthy by pushing beyond an EMA or support zone then look for that divergence again or understand that the trend is coming to an end. I use bollinger bands or a keltner channel with 20 ema setting/2x multiplier for my divergence trading. Ultimately, divergence trading works very well but you must not ignore market structure, support, and resistances reflected in the price action!
Hello Nick, I am most interested to learn as much as possible about divergence, including hidden and exaggerated divergence, along with relevent strategies.
Nick, great vid. I would be very interested in hearing about hidden and exaggerated divergence. Also, have you kept any stats on the strategies? Pip draw down and potential would be great! Also, how often do these divergence strategies present themselves? Do you see some forex pairs have more opportunities than others? Much appreciated!
Forex pairs are more about just volatility and market structure then check for divergence on lower time frames. Also it works in reverse. So a divergence can warn you to get out of a trending position.
@@Aldrimon You can use it in 1hrs, 4hrs and daily for optimum result but done forget to combine it with some form of breakout strategy to increase your win rate as not all divergence will work out generally.
I understand Divergence, in fact I love RSI and Stochastic divergences at the same time. I also understand hidden divergence however I have never heard of exaggerated divergence so if you could do a video on that, I'd really appreciate it.
I dont understand 5:52 There is also divergence with the dip before the other one... but the market structure didnt change? it only dipped a little up before going down again.
Excellent video. A better understanding of divergence has kept me out of quite a few trades i otherwise would have stopped out on & so yeah less trades better quality better gains overall.
Love your videos bro. A big thanks to you and your team. Playing devils advocate here im sorry. But if a long was taken on the 2nd touch of rsi higher high it would have gone terribly wrong. Slight slight hignsight trade usingn the 3rd touch... but i like the break of trend line confirmation though. Maybe the addition of a 20SMA to seal the deal? Thanks guys! Keep em coming nick
