_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3)

0:00

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

hello traders and welcome back to our bbps course for today we have completed preschool course one kindergarten course two elementary course three

0:11

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

middle school course 4 summer school course 5 and today we're continuing from high school which is course 6 and we have from grade 9 to grade 14 trading divergences market environment trading breakouts and fakeouts fundamental analysis currency crosses multiple time frame analysis so we're going to start by you know talking about trading divergences so here are the subtopics under trading divergences

0:39

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

trading divergences is the one first one then regular and hidden divergences the third one then how to trade divergences i'm just going to say dv so when i say dv you just know i'm talking about divergences okay so how to enter how to avoid entering too early when trading dv

0:59

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the nine rows of trading dv and dv sheet sheets then dvs are not a trade signal so let's dive right into the first one trading dv and here it is so what is diverges is all about what if there is a better way

1:26

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

to know when to enter into the market to sell near the top and to buy near the bottom of a trend would you be interested in knowing that now if you believe a currency pair will continue to fall but you would like to short at a better price or a less

1:44

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

risky entry so guess what there's a way to find this out and it's called trading divergences in a nutshell diversions can be seen by comparing price action and the movement of an indicator

1:59

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

so i with this picture here you see the first diagram to the top is the price action right on your chart and the next diagram to the bottom is the indicator right and you can use whatever indicator you want to use you can use the relative strength index the rsi the moving average convergence divergence the macd the stochastic and the cci indicator okay the great thing about trading divergence is that you can use

2:27

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

them as leading indicator and after some practice is not difficult to support with your eyes so the best thing about that dvs is that you're usually buying near the bottom or selling near the top either way right it's a win-win for you know for you so trading divergences now just think about it

2:49

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

just think of higher highs and lower lows right price and momentum normally move hand in hand just like avocado and toast hansel and grethel okay that's how price and momentum they move okay so if price is making higher highs

3:10

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the oscillator should also be making higher highs if price is making lower lows the oscillator you are using should also be making lower lows however if price is making higher highs right and the oscillator is not making higher high then this is called divergence okay they are diverging they are separating from each other they are not going the same way because we have we just learned that price and momentum

3:37

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

they move in the same direction so when one is moving in the opposite direction it is called divergence and this is a tool we are going to use to know how to spot quick entries end of momentum a new change in trend and new change in market structure and all that okay so using divergence can

4:00

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

be very useful in supporting a weakening trend or a reversal in momentum okay so there are two types of divergences the regular and hidden divergences okay so let's move on and consider the regular divergence okay so what is the regular divergence a regular dv is used as a possible sign for a trend reversal okay and there are two types of regular divergence

4:28

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the bullish divergence and the bearish divergence okay so the regular diverges goes this way the regular bullish diverges rather if price is making lower lows right but the oscillator is making higher lows okay this is normally what occurs in a downtrend we call this a regular bullish

4:48

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

diverges we know lower lows the market is going bearish it's falling down right however if the oscillator you're using either the macd or the rsi or the stochastic or the cci is making higher lows

5:00

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

it is diverging okay and so this tells us that we are nearing the end of the trend and that the price of the market is about to reverse to the top side

5:14

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

that's how you use the bullish divergence take a look at the diagram you're seeing right now the one at the top is the you know price while the one at the bottom is the oscillator as you can see prices is falling down making lower lows lower high lower lows lower highs however the oscillator is making higher lows okay it is diverging okay so this way we know that price of the market is about to rise to the upside

5:43

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

now what about a regular bearish divergence this occurs when price is making higher highs but the oscillator is making lower highs then you can call this a regular bearish divergence price is

6:00

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

in an uptrend however the oscillator is telling us or making lower highs so after price makes that second high if the oscillator makes the lower high then you can probably expect price to reverse and drop now again you see the diagram on your screen this is price going up okay so this is price

6:30

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

making higher highs right however the oscillator right is not making lower highs this high is lower than this one so this is why we call it a lower high and this indicates to us that the uptrend is about is depleting and market structure is about to change and price is about to drop so as you can see

6:59

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

You can use divergences to try to pick tops and bottoms. You are looking for an area where price will stop.

7:07

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

and reverse the oscillator signal to us that momentum is starting to shift and even though price has made a higher high or lower low chances are that it won't be sustained so now that you've got a hold on a regular divergence it's time to move and learn about the second type of divergence the hidden divergence you don't need to worry about that it's not hidden it's not a secret it's called hidden because this divergence is inside the current trend okay

7:35

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

so how are we to understand the hidden divergence so earlier we covered the regular divergence and now we're about to consider the hidden divergence so divergences do not only signal potential trend reversal but it can also be used as a possible sign for a trend continuation and that's what brings us to this hidden divergences now we'll have the two types of hidden divergences

8:01

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the hidden bullish divergence hidden bearish divergence right so when we are in a trend you know the trend is our friend that's very true that's what we always say so when you're in a trend when price is making a higher low

8:16

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

but the oscillator is showing a lower low right no we are in a hidden bullish divergence so let's say a pair is in an uptrend right you know an uptrend will have higher highs higher lows higher highs higher lows okay so if there's a higher low check the oscillator if it's making same higher low or if it doesn't and it makes a lower low then we've gotten hidden divergence taking place okay

8:45

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

and what does that show to us that is a possible trend continuation now the hidden bearish divergence okay so this happens when price makes lower highs but the oscillator is making higher highs right if price is making lower low lower highs lower low lower highs however the oscillator is making higher highs just know that the downtrend is going to continue

9:16

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

falling downwards so this is the hidden bearish divergence the diverging that's how you know the trend is going to continue in its same direction which is the following so if you're a trend follower you should be able to dedicate some time to study divergences okay regular divergences hidden divergences keep in mind also that regular divergences are possible signals for trend reversals

9:44

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

while hidden divergences are a signal for trend continuation okay so regular divergences signal possible trend reversal while hidden divergences signal possible trend continuation that brings us

10:00

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

next topic that says how to treat divergences okay so how are we supposed to treat

10:10

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

divergences so first look at the chart okay let's look at the chart very well now this is the daily chart of the pair you as a chf right and as you can see the price of the market of the chart is making lower highs and lower lows right so we have lower high lower lows here and the new lower low however the oscillator is making higher lows because this first this first low

10:39

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

and the second low is higher than the previous first low so it's making higher lows okay so what do we see we see that the prices this is a very clear divergence right right they are not moving in the same direction be stochastic

10:52

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

indicator should be making lower lows but rather making lower lows like the chart or the price it is making higher lows so this can signal to us that something is about to continue to happen perhaps a change in this downward trend okay so what should we do according to what we have learned before if price is making lower lows but the oscillator is making higher lows right this especially on a downtrend okay this is a bearish uh

11:21

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

divergence okay and once it is bearish what should we do we should try to you know enter into the market and expect prices to bounce back up so now we smell something is fishy so what should we do right it's time to buy so if you bought congratulations boom look what happened price rallied up to the top side okay and

11:44

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

yeah you made a lot of bucks okay and also did you notice the tweezers buttons here the two tweezers buttons are very powerful candlestick formations okay so what happened from the tweezers buttons price rose broke this high came back for a retest here okay price broke this level okay this candle broke

12:06

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

came back for one two three reaches here and price shot back up so if you had entered the market somewhere here right you would have ruled all these peeps at the top side okay and that's awesome

12:20

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

great way to trade entry for you so that's how you use our divergence so how do we treat the hidden divergence now we know the hidden divergence is to know or hidden device to know if a trend is going to continue in its momentum if it's a downtrend if we use it you know if it's going to continue to the downside if it's an uptrend we use the hidden divergence to know if the market is going to continue to the top side as well so here we have a hidden divergence what do we see

12:49

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

we see price making lower lows and lower highs again this is also the daily time frame of the usd chf usd dollar and the swiss frank okay so

13:01

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

we see the trend line right price respect the trend line trading to the downside okay however when you look at the stochastic indicator you see price making higher highs okay uh it shouldn't be making higher highs because it's the the the chart the price is making lower lows so the the stochastic also should be making lower lows but in this case the stochastic is making higher highs this is divergence it is diverting from what the price

13:29

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

of the market is actually doing okay so what do we do we we can also smell something is fishy here it's it's it's not right okay the price of the market should be making lower load so if you had taken an end you can decide to take a short entry or well just sit back and relax and watch how price plays out and if you sit back and relax and watch how price plays out

13:52

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

boom what happens you see the trend continued in the direction and you'd be like oh my goodness if i had known i should have shortened this trade i should have taken a short entry now look at the stochastic again okay after making the second high this higher high prices fell down and yeah you could have made lots of peeps

14:14

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

from taking this entry okay don't worry about this image is professor savia you know he pulled his hair because he failed to do what he ought to have done so that is how we use the

14:26

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the hidden divergences now let's take a look at how to avoid entering too early when traded divergences how to avoid entering too early when traded divergences so there are ways you can avoid this right so one way to do this is to be patient of course if you're not patient right if you jump the gun and you find out that you experience so many stop outs and so many stop outs will cause you also divergence between your profit and loss and

14:55

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

you'll take profit okay so you don't want that to happen so one way to

15:00

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

avoid entering too early is to wait for an indicator crossover just wait for a crossover of the momentum indicator this would potentially tell you that the momentum is shifting from buyers to sellers or from sellers to buyers now the main reason behind this is that you are waiting for the top or the bottom and these camps be formed

15:23

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

unless a crossover is made look at the shots we're seeing right now the price is making lower lows the indicator we are using stochastic is making higher higher highs right and this is clearly showing that we are

15:40

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

in a downtrend continuation okay so what do we do the only thing to do is just wait for a perfect confirmation just wait for a perfect confirmation and by the time you do this you are going to write the market down okay patience is a virtue my friends and that is what we are learning here right now so take a look at this other chart okay the stochastic indicator shows us that the price is going to go down

16:10

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

the price action also shows that we are on the lower lower highs right and so look at the shot the trade was you know a winner down down down trade right so

16:21

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

playing the patient game can be very very helpful another way to avoid entering too early into divergence trading is to wait for the indicator to move out of the overbought and oversold territory just wait for the momentum higher highs and lower highs will hit overbought and oversold conditions and then wait for the indicator to move out of

16:45

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

these conditions the reason is that because we really do not know when the momentum shift will really begin now

16:53

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

this does not work for the price this doesn't work don't connect your bottom okay connect only tops that's what we are learning rule number four is keep your eyes on the price okay do not look about do not take a look at the indicator yet just look at the price once you have connected either to tops or either to bottom look at your preferred

17:17

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

technical indicator okay and remember you are comparing its tops or bottoms now some indicators like it might be also classic they have multiple lines okay so don't just don't worry about that consider and focus on the tops and bottoms about everything else okay now five be consistent with your swing highs and swing lows if you draw a line

17:42

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

connecting two highs on price you must draw a line connecting the two highs on the indicator as well okay do so for all of them if you draw all line connecting two lows on price you must also draw a line connecting two lows on the indicator okay now this is a perfect one to go with okay you connect this one and here you're connecting this and this

18:12

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

here and here do the same connect this and this here and here on the indicator as well be consistent with it with consistent in drawing your lines correctly okay correctly now keep price and indicator swings in vertical alignment

18:37

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

price and indicator swings on vertical alignment the highs or lows you identify on the indicator must be the ones that line up vertically with the price highs or lows don't just pick anything maintain a vertical alignment with the price swing highs and lows with the indicator swing highs and swing lows here is what we're talking about maintain the same vertical alignments okay

19:05

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

like this so once you've drawn make sure you are able to take note of where you are

19:15

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

where you are okay they must match each other the price on the chart must match that on the indicator it is very very paramount that you do this okay then watch the slopes divergences only exist if the slope of the line connecting the indicator tops or bottoms differs from the slope of the line connecting price tops and bottoms it must be almost as beautiful as this

19:45

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

very very important to do this so make sure you practice this okay keep practicing and keep practicing if the ship has sailed catch the next one okay so if

20:00

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

spot the divergence but the price has already reversed and moved in one direction for some time the diversion should be considered played out you missed that boat okay all you can now do is wait for another swing high or swing low to start to form and then start your divergence search all over again do not chase do not chase once it's gone once you miss the trade okay

20:25

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

Try and catch another trade. 9. Take a step back. Divergent signals tend to be more accurate on the longer time frames. In that way, you get less false signals. Yeah, it can mean that you will be having to take fewer trades. But if you structure your trade very well, then your profit potential can be very huge. Divergences on shorter time frames will occur more frequently but are very very less reliable. So, Babypips is saying...

20:55

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

take or look for divergences on one hour shots or longer and they are saying some people used to you know look at the 15 minute shots or faster ones but they don't because it has lots and lots of noise okay so follow these nine rules if you follow these nine rules which is a must right you will be very very skilled at trading divergences or using it okay

21:23

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

however if you fail to take these rules and follow these principles your account is going to take a hit and then you're going to have a lot of divergence between your account balance your equity and your take profit okay so so here we are on divergence sheet sheet okay so what i would remember so far what i've learned let's let's recap there are two types of divergences okay first one is a regular dv

21:51

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

and the second one is a hidden divi right and each type of divis will contain either the bullish buyers or the bearish buyers okay now since you have all been studying hard and not been causing classes decided to help you out because they're not like that by giving you a divergence trading sheet sheet okay baby which is funny

22:15

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

okay so the regular divergence here is a bias if it's a bullish divergence the price action will be making lower low in a downtrend okay however the oscillator will be making higher low and that tells us that the momentum or the structure of the market is about to move from low from downtrend to an uptrend now if it is a regular bearish divergence

22:44

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

The price of the market will be making higher highs. However, the oscillator will be making lower highs. And that tells us that the strength of the boost is weakening. Structure, price, momentum of the market is about to shift from uptrend to a downtrend. And then we'll have the hidden divergence. I will know what is useful to know the trend continuation or not.

23:08

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

now the bias is this and if it's for the bullish hidden divergence that tells us that the trend is going to continue higher and what are we seeing what we're looking at the price of the market should be making higher low however the oscillator is going to continue to make lower low um this is a good entry because it shows that there's a retracement in an uptrend and it's nice to see

23:34

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

that the price or the price returns of previous lows and we are to buy the dips however if it's for a bearish hidden divergence okay the price of the market should be making lower high however the oscillator should be making higher highs and this indicator shows that it's time for us to rally behind the so so why

23:59

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

DVs can occur between price and any other piece of data. They are most commonly used with technical indicators, especially momentum indicators like the oscillators including commodity channel index , relative stretch index ,

24:18

S… Speaker 4 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

stochastic and the williams percentage range so you can try and remember all of these but if you don't remember them write them on your palm if you want to and then you can go back and look at your palm to remember them anyway i'm just being silly but that's what it said

24:33

S… Speaker 4 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

so try and bookmark this page if you want to or write it out all these tips on sheet of paper and keep it beside you place it on your walls okay and do not do not mix them up so let's go and consider the next lesson divergences are not a trade signal okay so we you we don't use divergences dvs as trade signals rather

25:00

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

as an indicator to try to show what is about to happen that doesn't mean it is going to happen because you cannot predict market okay market is action based you don't you do not predict okay it's reactive not predictive so you act and take action based on the reaction you are seeing on the market okay so you just cannot base all your trading right solely

25:27

S… Speaker 2 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

on divergences okay you use dvs as setup condition combined with additional confirmation tools okay and that way you have a high probability of winning your trades with relatively low risk okay however there's a way to be more advantageous in trading divergences and one way is to look at trend lines or characteristic formation to confirm whether a reversal

25:56

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

or continuation is in order and then another way is to make use of momentum tricks by watching out for an actual crossover or waiting for the oscillator to move out of the overbought or oversold region so we look at the chart before us right now we see the trend line on price okay and then we see the oscillator they are definitely diverging okay but what do we see if you had bought

26:25

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

base of the oscillator because it's in an oversold region or area if you had bought and what would have happened you would have lost the trade because price of the pair continue to head lower and lower and lower okay so you just can't beat your trading or your entries

26:44

S… Speaker 1 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

based off on based off on your oscillator or that divergence is a lot no another way you can become more smart is to draw trend lines on your oscillator and also on your price chart and look at the chart we have before us right now we have the trend line on the oscillator we also have it on the on the chart so what do we do after drawing it make we just wait for the price to break the trend line okay or the brick wall

27:14

S… Speaker 4 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

make with for price to break it and then get the fun entry and enter into the market so if you do this it will not be difficult for you to make good trades and also it should not be difficult for you to spot false signals and filter those out and you always position yourself at the right side of making profit it's not easy anyway you have to train yourself to be able to spot good

27:42

S… Speaker 5 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

dvs so remember taking no position is a trading decision in itself okay it's better not to trade or hold your position right like not getting to the trade than to risk it on you know ideas that you cannot confirm yet so remember this

28:02

S… Speaker 4 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

dvs don't appear often but when they do it is left for you to pay more than the usual attention remember regular dvs can help you collect a big chunk of money because you are able to get in right when the trend changes and also hidden dvs can help you ride a trade longer resulting in bigger than expected profit by keeping you on the correct side of the trend okay so

28:30

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

it is important for you to remember this now the trick is for you to train your eye to spot dvs when they appear and choose the proper divergences to trade okay cherry pick your setups and you will increase your odds of winning your trades so that brings us to the end of dvs divergences next we'll be considering market environment so you have concluded great

28:58

S… Speaker 3 (_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3))

nine of course six bravo please remember to turn on your notifications so that way when we release our new courses you'll be notified and also if you enjoyed this video and you've liked it and if you've not subscribed already please smash the like button subscribe if you haven't and until next time take care

_storage_emulated_0_Android_data_com.fawazapp.blackhole_files_DCIM_blackhole_FYMI6UO74F (3)

Samenvatting

Vraag AI over dit Transcript