Category: Articles & Education

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…

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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…

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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.

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