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
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.