A Divergence Breakout Trading Setup
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
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.