If you been trading for a while you know that divergences are…
A divergence occurs when the market doesn’t behave in the same way oscillators do.
Let say the market makes a higher high (or a lower low), but the oscillator (RSI, CCI, Stochastics, etc) fails to make a similar high (or low)… that’s a divergence.
The idea is that, since the indicator doesn’t agree with the market, “something” might happen, like a major reversal, consolidation period, etc.
So here is what I think…
divergence, divergence trading, oscillators, technical indicators
Markets change Traders, that’s a fact.
The way the markets traded 15 years ago is definitely different from the way it is currently trading. If you found a system that worked 15 years ago, I assure you that it wont work today, that simple.
The only way you can survive is by Adapting to the Market Conditions, there is just no other way.
And the same happens with fundamental releases…
Fundamental, fundamental announcements
The idea of having a formula that will magically predict the end of a correction period (Fibonacci retracements) sounds awesome.
Sounds like a tool everyone would like to use (including myself)…
But, does it really work?
Fibonacci, Fibonacci Retracements
In the last couple of days the market has been very very slow. If you try to find trend trades you are going to get burned…
The thing is, as always, you need to adapt to the market conditions.
The key is to find currency pairs (or any other instrument) with a clear range. Once you find it, pay special attention to the the market reacts at both extremes of the range.
Adapt, market condition, range
I know some traders use technical indicators (overbought/oversold, Divergence, etc), formulas (pivot points, Fibonacci, etc), even moon cycles to predict market turns…
But I use a more simplistic approach.
market turns, simple, strategy
Most new traders look for the “secret weapon” that will help them to successfully trade the markets.
They want that system or indicator that will eventually lead them from where they are, to where they once dreamed of.
indicators, systems, trading
Hello Traders, how is everything with your trading?
In the last couple of months, the volume has been low, and its not that it is more difficult to trade, but you need to adapt your strategy, and trade accordingly.
liquidity, low volume, range, strategy