Hey, traders. Here on the GBPUSD, we have a great example of a CTS type of trade. This market is at a previous HTF level of structure. It has also gone overbought on the RSI on higher time frames. Now, that alone is not enough reason for me personally to enter a trade, but taking it down to an hourly chart, here we have a nice double top. This double top looks great but I still needed to see one more thing for entry.. Divergence. This double top is accompanied by RSI divergence. All of this combines to make a good possible trade. It is very important to remember that we have to incorporate many things into a trade, not just one entry reason, or the fact that the market is at resistance/support. In order to have optimal results as a technical trader, we must incorporate conditions along with entry reasons to create a successful strategy. Hope this was helpful. I do private ideas for FREE each week to everyone who is signed up for the email list at The Trading Channel. There is a link below to sign up for FREE.
Do you ALWAYS include after hours data when looking at divergences? I'm asking because on Friday NIO gapped down breaking my pitchfork support and 1hr, 2hr rsi bull divs (4hr still there). It traded just below my 100% $2.45 extension target. If I use normal trading hours only the bullish divergence is still there.
raziskamarizan
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pattern invalid
truelyyy
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I originally thought this but having looked at it again I think this is a flat corrective wave and it will break to the upside for the 5th wave before a large downwards retracement due to wave 4 and 5 being disproportionately short time wise. Entry below 131.600 however would confirm it is not a flat correction.