September 30, 2011
- in Uncategorized by schooloftrade
Use our Divergence Trading Method to increase your odds of success
Divergence Day Trading Method:
Uses multiple timeframes and our divergence indicators to find the highest percentage trades.
Multiple timeframes: I use my slower timeframes to find the most important price levels/locations.
Divergence Indicator: used on multiple timeframes, and when the signal fires we know to look closely for a high percentage trade.
The keys to success with this method:
– Look for divergence ONLY at the major levels of support and resistance. Look for signals at the extremes, and NOT in the middles.
– Always use a price pattern to enter the trade when you see the divergence
– Always use your entry rules
– There are two types of divergence, minor and major, we want to stay patient for the MAJOR divergence.
– Slower timeframes are more powerful
o Example: 13range Divergence is not as strong as a 89range divergence
What session do we use? 12am start/12am stop (24 hour chart) I do not use Gap Charts
Hotkey Trend Channel Tool = ctrl +2