Tuesday, May 24, 2011
Hidden divergence
Hidden divergence (HD) is best used in trends to continue trading with the trend. A high percentage of hidden divergence trades will move at least until the last swing high / low, and it gives you a way to calculate your risk / reward trade. If not enough points between the signal and the last swing high / low, then many traders will usually pass after the trade. Another warning to pass on the trade mark by HD is having RD present for the last 3 highs or lows in the uptrend in the last 3 downtrend so that a signal of a possible change of trend (hut).
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