Tuesday, April 1, 2014

Trading with divergence and hidden divergence

look at the picture

Daily chart

trend line  indicates up trend.
Candlestick shows price is retracing back to up

So the trend is up and we will look for buy entry.



Now 4 hrs chart

look at the picture
Here I have used fibbonacci fan, Stochastic . look at the picture
Here there is hidden divergence and price retracement on 61.8% fib fan
Also look candlestick which also shows reversal.
So it is the time to enter the trade, also put SL , Below d3, TP  target 1 D2, target 2 1.27% fibbos expansion.



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