Divergence is an indication of a market reversal.
However, traders always trapped into a lost trade if the market is entered with a wrong knowledge of the divergence setup.
Here is my setup identifying a valid divergence, and identifying a false breakout after a divergence.
In this strategy, I will use these indicators:
1. EMA 14: To confirm market direction (Buy or sell)
2. Commodity channel index (default setting): To identify market divergence
3. MACD: to confirm market buy/sell and validity of a divergence setup
4. Price action
5. Trendlines
However, traders always trapped into a lost trade if the market is entered with a wrong knowledge of the divergence setup.
Here is my setup identifying a valid divergence, and identifying a false breakout after a divergence.
In this strategy, I will use these indicators:
1. EMA 14: To confirm market direction (Buy or sell)
2. Commodity channel index (default setting): To identify market divergence
3. MACD: to confirm market buy/sell and validity of a divergence setup
4. Price action
5. Trendlines
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.