Handling Divergence Drawdown
One of the biggest challenges that FOREX investors face when utilizing the divergence strategy is drawdown. Drawdown occurs when a number of stops are triggered at various points in a trading cycle. When a sudden number of stops are hit, the price may automatically tank, thereby leaving investors short of profit....
Introduction To And Rules Of Divergence
Divergence is one of the most common indicators which is used to guide investment decisions. When you are able to spot divergence clearly, you can pick up on the overall direction a trend is heading. In this manner, you can anticipate, within a reasonable margin, the potential...
Support Level Confluence
In this type of setup, you are basically speculating on a breakout. Please bear in mind that you need to spot at least three hits in order to determine your support level. Additionally, the price action may reflect a resistance level, or perhaps not. It is not necessary to establish both...
Using Price Action Strategy
In FOREX, “Price Action” refers to a discipline that helps you to determine how to conduct trades. While there are several tools such as moving averages that help to determine support and resistance levels, the fact of the matter is that price is the sole indicator that reflects any changes...
Using Divergence for Entry and Exit Strategies
Divergence is highly effective when you are looking to plot entry and exit points as part of your overall trading strategy. Mainly divergence can signal at what point you can get in and at what point you should get out. It should be noted that the perfect...
Working With Indicators
MetaTrader 4 is loaded with indicators. It comes pre-loaded with over 50 various indicators. These core indicators are set up automatically when you install MetaTrader 4 for the first time. For the most part, you might not see the need for additional indicators. The core indicators may be more than enough...
Signs of a Legitimate Broker
When you are selecting the brokerage firm you plan to do business with; there are a number of signs you can look out for. So, let’s take a look at these signs:
You can get full information on the parent company running the platform. This...
Psychological Levels
For all the data and analytics in the world, investors are usually driven by psychological factors. These factors may range from fundamental elements such as economic stability to purely subjective factors like expectations.
As such, psychological levels are generally associated with resistance and support levels. For instance, investors may...
Divergence and Confluence
Confluence occurs when two or more indicators meet each other at some point in a chart. This means that you need to look at various indicators to ensure that you have the right setup in mind. To do this type of analysis, the most common means is through the MACD.
Avoiding Divergence Drawdown
The easiest way to avoid divergence drawdown is to look at the resistance level for the currency pairing you are tracking. While you might be tempted to set up your take-profit point right at the top of the wave, you might think twice about it. If you see a double top,...