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Profitable Forex Divergence Strategy You Must Know
hi traders I welcome to my up Oryx training video tutorial okay in this tutorial today I shall be going through this Forex divergence strategy okay basically this is a very reliable strategy that light used and def why I decided to I record this video to share with you guys more about the strategy and show you some trading examples from a live chart see how this thing works okay okay so let's go through exactly is this divergence strategy okay basically it makes use of two indicators is atomic use of the MACD divergent and slow answer a stochastic type version both of them are separate strategy so let me go through one by one okay so first of all let me go to this MACD divergence strategy okay before actually I can proceed with this strategy you need to know exactly what is or MACD divergence okay so all you do is a spotter make the indicators at the formatting indicators on any one of timeframe that you like or any currency pair of light mister this method works on all currency packs as well as or timeframe okay so let me show you exactly how this thing works okay so let's see you see here this is a positive time version okay this example positive divergence actually I did take this picture from a yes dollar I see Frank on a for hourly chart and a 4-hour chart okay so what happened here there's always exactly a positive divergence okay when you can see that when the price pick on lower low you can see the price actually move here move up and move down and see this law is actually lower than this law okay this one called lower low MACD indicator can see this dissonant in line but Amica I along can see this law is in fact higher than this law here okay so this is what we call divergent because theoretical most of time you see that when this our price pick a lower low the MACD or super Creole or low as well okay okay like this case can see it's actually uh higher high you see higher high all the way I make these also creating a higher high here and see this high is higher than here there's our normal MACD patterns that we see however this pattern here is what we call it divergent so and every see this up these divergence it is a signs that the price is going to move down okay it's going to reverse from down to up so but this time this picture here exactly show you what happen after that you'll see that price actually moved up 296 pips okay let's say that you're not able to take all the strictly certain 29 6p just take a portion of it it's a very good profit let's say for example you exceed a hundred pips harmful dip which is a major resistant level this is a very good profit by yourself okay so let me talk about more about this later on okay in a treating example let me show you why exactly is their negative time version not I understand was posted a virgin okay this is a negative divergent okay so a negative divergence form when price make a higher high and see that the price move up down in mock up again this high is higher than previous high okay the MACD is creating and lower hi can see this high here versus this high here the new high is lowered and oh hi okay this is what we call a negative MACD divergent and I ever see this is actually telling you that price is going to reverse from up to down and sure enough can see what happen here the price moved up a hundred fifteen points okay which is very big collapse okay and this is actually taken from the pound a pound dollar an hourly chart okay this is just to show you that it works on all time frame it works on all currency pain so don't worry about the time frame or currency pad because it works on all of them okay so now that we have this to another understand this are most definitely is divergent so let me show you a net sample okay in a chart okay so this is a open this our power dollar okay on this this is around August 2013 okay so what happened here is that the price can see here make a higher high ok create a higher high here ok and what we do is that I usually do in my trip I'll just draw the line hope you tell me in this hi hi and take a look at my MACD indicator study for MACD so you can see this high here is lower than this high so for me again draw a line and from here it tells me that I why I'm seeing is negative divergence so what I'm doing going to do is I'm going to enter a short trip but how do I enter it this very important this why I'm going to show you this video here ok I'll enter this trade right when this histogram flips from up to down because negative divergence is telling me to go short so therefore I must make sure that this histogram flipped from up to down and once the town tire has been formed okay and has been completed I'll enter my trick so you can see what this thing flips are up and down the completion of this the next candle our enter trick here this is exactly where I'll enter training a short training but at this point I'll enter short trade so let me indicate this trader enter you know black mine ok and where should I place my stop loss was the question you guys will be asking ok I'll place my stop loss at the most at the most recent string high which you see you can see then ok this is actually I'll show you by wrinkle line ok so this is my arm stop-lossed which is from here to here you will be about 35 peeps 236 pips ok turn five 236 pips so where am I going to take the profit ok with this strategy I always take – – – so if here is 36 P my profit will be a 7 – blip Isetta target seventy-two here okay one point five four six five Oh indicate by this blue color line as you can see what happens at the price to actually move down move tap again and move down worked up and eventually hit my target profit here okay and this is where I make my 72 peeps using this strategy okay I hope that you guys understand how I actually take this straight okay so if you are going if you see a positive divergence and mr. price gonna move tap moon so what you do is to wait for the Kendall the histogram to flip from down up before you enter tricky before this example because I'm going for negative divergence is going down once this R is to come from up to down upon the formation of next one I will enter training video okay so this is how I used to deep divergence strategy to treat them okay so let's go back to a slight okay so besides the might be indicators as we use stochastic indicators to track this stochastic divergence strategy okay so how does the stochastic divergence strategy works so first for similar esters make the indicators you need to know the positive divergence and negative divergence of this stochastic indicators okay so what you're seeing here on this picture is the pound u.s. dollar hourly chart okay so we can see that price bigger lower low okay but a stochastic nikka higher load and see this low is higher than here this is what we call positive divergence so two positive divergence telling us that price is going to move down and sure enough you can see the price moved about 275 pips okay after the formation of this positive divergence okay so open negative divergence so a negative divergent right we can see the price pick a higher high or stockist mega low hidin okay and this is what we call negative diverting the mr. price is gonna move okay can see this is on the pound yen 15 minute chart and a price academic dance 74 poops after the formation of this negative divergence and that's how amazing this divergence strategy works okay so let me show you example of this a stochastic divergence strategy so what you're seeing here is actually the pound she sprang about the chart okay so what we have here is this this pattern you can see this is a low point this is another low point so let me connect them together okay so this is a lower low okay this is a lower low well at this point here you can see it's a low point but this is a higher low let me connect them and here what we have is actually the positive stochastic divergence okay this is sine the price is going to move tap later on so what happen is that when this blue line cross above this is where I enter trading okay at this point here and we're place my stop loss or be other most recent line okay so how long how is this thing okay it's about 32 pips so my target profit would be double of this which is 64 pips so I studied somewhere here okay as you can see here I would happen instead okay let's see if you enter this straight line when you see the per second it moved up immediately see that I can see the number is changing here on the side here it's actually the sixty four pips here okay at this point here 64 per person at this point here actually I take a profit of 64 pips which is actually a Runyon's two to whisper ratio for this strategy okay that's how amazing this strategy is EC can go even further okay for those of you with higher apatite you can set one it's a tree one is to forestry ratio which is a very powerful strategy that would recommend everyone give you a try okay so uh basically this marks the end of this video tutorial and I hope that you guys actually enjoy this video tutorial and I'll try to prepare more videos for you so for those of you who are interested to find out more grading strategies and tips you can visit my Forex block and Forex strategy training calm okay and and this is totally my trading block okay and here actually I sheriff you are the strategies mo strategies okay besides this divergence strategy okay how to trick with moving average indicators you will learn how what makes a profitable forex strategies as well as are useful training pattern scanning software I used so are basically all this thing here are written by me and I hope that you guys can just come here and take a look and learn more things from this Forex block okay at the same time you can just join my up forex trading this ladder okay and you'll get oh I get download copy of my book this book took me three months to write and uh basically it's a very useful book that can improve your trading skills just sign up for newsletter here which is free and your empty to get to download this book okay for time being this is all I have for you so I talked to you in ending in my next video
