Crude oil Tutorial Set up and trade example from today. This
shows the power of the reversion to mean trade. We had hidden
divergence, a candle completely under the bb's, lots of room to 5
EMA, and an important moving average (200 MA), and it was a
measured move down. What else do want to confirm a trade. Also,
there was a quick scalp to be made at the 50 MA that may turn out
to be a nice holder. Notice the red horizontal line where the 50 MA
is. That is also the value area high.
Hidden Divergence is sign that trend is
continuing: http://www.babypips.com/school/high-school/trading-divergences/hidden-divergence.html
Hidden Divergence
Divergences not only signal a potential trend reversal; they can
also be used as a possible sign for a trend continuation. Always
remember, the trend is your friend, so whenever you can get a
signal that the trend will continue, then good for you!
Hidden bullish divergence happens when price is making a higher low
(HL), but the oscillator is showing a lower low (LL).
This can be seen when the pair is in an uptrend. Once price makes a
higher low, look and see if the oscillator does the same. If it
doesn’t and makes a lower low, then we’ve got some hidden
divergence in our hands.
Wow, inverted Eiffel Tower in Crude oil! Perhaps a little short
setting up on the 30 min or 15 min chart! Crude hit a perfect
symmetry move on it's ride down this morning. No more, no less.
Above the 200 MA and a big pull back are the best trades!.
Shorting will be a counter trend trade now.
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Crude oil Tutorial Set up
Posted by zenman on 4th of Mar 2015 at 12:44 pm
Crude oil Tutorial Set up and trade example from today. This shows the power of the reversion to mean trade. We had hidden divergence, a candle completely under the bb's, lots of room to 5 EMA, and an important moving average (200 MA), and it was a measured move down. What else do want to confirm a trade. Also, there was a quick scalp to be made at the 50 MA that may turn out to be a nice holder. Notice the red horizontal line where the 50 MA is. That is also the value area high.
http://screencast.com/t/oI6Xkxzf
Nice. Could you explain a
Posted by zboy2854 on 4th of Mar 2015 at 03:06 pm
Nice. Could you explain a bit more what was the hidden divergence? Also, do you usually use the 30 min chart when trading crude?
Hidden Divergence is sign that
Posted by zenman on 4th of Mar 2015 at 06:15 pm
Hidden Divergence is sign that trend is continuing: http://www.babypips.com/school/high-school/trading-divergences/hidden-divergence.html
Hidden Divergence
Divergences not only signal a potential trend reversal; they can also be used as a possible sign for a trend continuation. Always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then good for you!
Hidden bullish divergence happens when price is making a higher low (HL), but the oscillator is showing a lower low (LL).
This can be seen when the pair is in an uptrend. Once price makes a higher low, look and see if the oscillator does the same. If it doesn’t and makes a lower low, then we’ve got some hidden divergence in our hands.
Wow, inverted Eiffel Tower in
Posted by zenman on 4th of Mar 2015 at 01:46 pm
Wow, inverted Eiffel Tower in Crude oil! Perhaps a little short setting up on the 30 min or 15 min chart! Crude hit a perfect symmetry move on it's ride down this morning. No more, no less. Above the 200 MA and a big pull back are the best trades!. Shorting will be a counter trend trade now.