4 steps in trading divergence with example MT4

Trading divergence


regular divergence ;  temporary change of trend
Hidden divergence: trend will continue.


See the example, Its 4 hrs chart

4 steps in trading divergence:

Step1:  

First detects 

1.  Higher high than the previous high
2. Lower low than the previous low
3. Double top
4. Double bottom

Step 2:

draw trend line from successive top to bottom

Step 3:
Do same for price and indicator (MACD,Stochastic,rsi)

Step 4 
U will get the divergence see picture above.