Divergence Signals in PFOREX Assist - Financial Market Analysis

Divergence Signals in PFOREX Assist

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Divergence Signals in PFOREX Assist

Ninety First session - PFOREX Assist Tutorial

Welcome back to Forex professional training.

In this session we will review;

  • The applied Divergence/Convergence strategies
  • The Divergence/convergence examples in PFOREX Assist

Divergence/Convergence

The Divergence/Convergence strategies courses are represented in various languages in education section, hence it is strongly recommended that you study required knowledge and information before applying these strategies.

The provided strategies are;

Divergence Signals in PFOREX Assist - Trading Signals & Strategy

Candlestick

In case that a powerful reversal candlestick pattern appears on the spot that Divergence/Convergence condition is detected by RSI or Stochastic.

The specifications of this strategy are as follows;

  • Market type: Trend & Range market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Divergence/Convergence, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: Bullish reversal candlestick pattern with Convergence
    • Sell Order: Bearish reversal candlestick pattern with Divergence
  • Stop Loss:
    • Buy Order: Below the last candlestick on the reversal spot
    • Sell Order: Over the last candlestick on the reversal spot
  • Take Profit:
    • Buy Order: Equal to length of the candlestick, over the entry price
    • Sell Oder: Equal to length of the candlestick, below the entry price
  • Confirmations: Hidden Divergence

Now let’s check some examples of this strategy.

After price has decreased on the GBPUSD symbol, it reached 2 consecutive valleys where Convergence is detected by RSI indicator. On the last valley, the Engulfing candlestick pattern confirms the bullish trend.

Divergence Signals in PFOREX Assist - Candlestick Strategy - Bullish

In the next example, on the bullish price trend two last peaks show Divergence by applying RSI indicator. The Engulfing candlestick pattern on the last peak confirms the bearish future trend.

Divergence Signals in PFOREX Assist - Candlestick Strategy - Bearish

Moving Average

In this strategy, after detecting the Divergence/Convergence, if Moving Average 3 (with faster response) crosses the Moving Average 15 (with slower response) then a signal will be generated.

The specifications of this strategy are as follows;

  • Market type: Trend & Range market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Divergence/Convergence, Moving Average, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: MA 3 crosses MA 15 toward top with Convergence
    • Sell Order: MA 3 crosses MA 15 toward bottom with Divergence
  • Stop Loss:
    • Buy Order: Below the last candlestick on the shifting spot
    • Sell Order: Over the last candlestick on the shifting spot
  • Take Profit:
    • Buy Order: Equal to length of the candlestick, over the entry price
    • Sell Oder: Equal to length of the candlestick, below the entry price
  • Confirmations: Hidden Divergence

Now let’s check some examples of this strategy.

The price trend of EURJPY has oscillated until Moving Average line 3 crossed the Moving Average 15 toward top where a Convergence is detected by applying RSI and Awesome Oscillator. It is speculate that price would rise after passing the High price of last candlestick on the reversal spot.

Divergence Signals in PFOREX Assist - Moving Average - Bullish

The next example shows bearish future trend in which a Divergence is detected by AO or RSI on two consecutive peaks. Concurrently MA 3 has crossed the MA 15 toward bottom to confirm the bearish trend. The three black crows also confirms the bearish trend.

Divergence Signals in PFOREX Assist - Moving Average - Bearish

Classic Pattern

In this strategy, after detecting the Divergence/Convergence, if a powerful classic pattern, such as Double Top/Bottom or Wedge pattern, is formed and confirms the Divergence/Convergence then a signal will be generated.

The bullish signal can be generated after a bullish classic pattern is detected while Convergence is indicated by RSI, Stochastic or Awesome Oscillator

The bearish signal can be generated after a bearish classic pattern is detected while Divergence is indicated by RSI, Stochastic or Awesome Oscillator.

The specifications of this strategy are as follows;

  • Market type: Trend & Range market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Divergence/Convergence, Classic pattern, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: Bullish Classic pattern with Convergence
    • Sell Order: Bearish Classic pattern with Divergence
  • Stop Loss:
    • Buy Order: Below the last candlestick on the shifting spot
    • Sell Order: Over the last candlestick on the shifting spot
  • Take Profit:
    • Buy Order: Equal to length of the candlestick over the entry price + half or same as Height of pattern over Neckline
    • Sell Oder: Equal to length of the candlestick below the entry price + half or same as Height of pattern below Neckline
  • Confirmations: Hidden Divergence

Now let’s check some examples of this strategy.

A Double Bottom classic pattern is detected while two valleys of this pattern show Convergence by applying the RSI and Awesome Oscillator. It is speculated that price would increase after it passes the High price of the bullish candlestick.

Divergence Signals in PFOREX Assist - Classic Pattern - Bullish

On the next example, a double top pattern has formed after a long bullish trend. The RSI shows the Divergence on the last peak of this pattern. The Entry price is below the reversal candlestick pattern while 1st Take Profit price is equal to the length of that candlestick below Entry price. The 2nd and 3rd Take Profit prices are determined by the height of the classic pattern below the neckline.

Divergence Signals in PFOREX Assist - Classic Pattern - Bearish

Notices

All the signals and strategies must be applied on Demo account several times for fully mastery.

You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.

That concludes this session, until next time and another session, take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

PFOREX Assist app provides BEST & FREE trading signals and market analysis. PFOREX Assist is available on App Store (iOS version) & Play Store (Android version).

The PDF file of this session is also available.


PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.

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