What’s Divergence? Indicator vs. Price

Pretty Little Liars

(Price LIES! Who else would say that?)

Duane from Colorado 2 trades per day

tracking every trade MAKE YOUR OWN RULES!

What days to avoid What systems you “approve” What your max # of trades is

Economic News Hours of the day you trade

Standard Divergence GBP/AUD 5m chart:

MACD set to 12, 26, 9

Knoxville Divergence Price Disagrees with:

Momentum (20)

Entry Occurs:

RSI (21) Falls Below 50 mark

Knoxville Divergence Stop-Loss

Below recent low (20 pips) Above recent high (20 pips)

Profit Target

RSI (21) reaches OB(70), OS(30) Or Recent High/Low

Divergence Works: Timeframes:

5m charts on any fx, futures

60/240m charts for stocks

Longer time frames are smoother, like Palmolive skin

Test your skills! Can you spot divergence on the

following charts?