Dear people,
I present you a bearish hidden divergence at the daily chart of the $EURUSD pair. As you can see is the price of the current swing high lower than that of the previous one. However the stochastics shows something different. We call this a divergence, a hidden divergence in this case which is in fact nothing more than a signal of a trend continuation. Which means with the current standings we're gonna see that 1.00000 definitely again!
You see also a yellow horizontal line at the chart. If price breaks this line then the above suggestion will be invalid since there's no divergence then anymore. In fact I would be bullish (at least for short term) when we break that line.
When is that short valid? I'd say your odds are good enough when the stochastics make a crossover. So wait for the moment since the chance is still there that we're gonna break the yellow line.
I'm much more bearish than bullish at the moment but wait at least for the crossover and maybe a signal from your own favorite indicator.
Regards,
Michael
I present you a bearish hidden divergence at the daily chart of the $EURUSD pair. As you can see is the price of the current swing high lower than that of the previous one. However the stochastics shows something different. We call this a divergence, a hidden divergence in this case which is in fact nothing more than a signal of a trend continuation. Which means with the current standings we're gonna see that 1.00000 definitely again!
You see also a yellow horizontal line at the chart. If price breaks this line then the above suggestion will be invalid since there's no divergence then anymore. In fact I would be bullish (at least for short term) when we break that line.
When is that short valid? I'd say your odds are good enough when the stochastics make a crossover. So wait for the moment since the chance is still there that we're gonna break the yellow line.
I'm much more bearish than bullish at the moment but wait at least for the crossover and maybe a signal from your own favorite indicator.
Regards,
Michael