Regular Divergence
Regular Divergence signifies either a correction to the trend or after further confirmation, a complete reversal of the trend.
Regular Divergence is identified by comparing price action (PA) to the Relative strength index indicator (RSI).
Regular Bearish Divergence (RbD) occurs when price action forms a higher high (HH) but the RSI indicator forms a lower high (LH).
RbD is confirmed by the candle close below the previous candle low.
BASIC
The entry price is taken from the candle close.
The stop loss price is taken from the candle high.
The target is set at 1-2RR.
The trade is closed at the target price.
ADVANCED
50% of the position is closed at target.
The stop loss price is moved to the entry price.
The Long hedge position is the size of the initial short position.
The hedge entry price is taken from the candle close.
The stop loss price is taken from the previous swing low.
The target is set at 1-2RR.
50% of the position is closed at target.
The stop loss price is moved to the entry price.
Regular Divergence is identified by comparing price action (PA) to the Relative strength index indicator (RSI).
Regular Bearish Divergence (RbD) occurs when price action forms a higher high (HH) but the RSI indicator forms a lower high (LH).
RbD is confirmed by the candle close below the previous candle low.
BASIC
The entry price is taken from the candle close.
The stop loss price is taken from the candle high.
The target is set at 1-2RR.
The trade is closed at the target price.
ADVANCED
50% of the position is closed at target.
The stop loss price is moved to the entry price.
The Long hedge position is the size of the initial short position.
The hedge entry price is taken from the candle close.
The stop loss price is taken from the previous swing low.
The target is set at 1-2RR.
50% of the position is closed at target.
The stop loss price is moved to the entry price.
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