Hidden Divergence Signals in PFOREX Assist - Financial Market Analysis

Hidden Divergence Signals in PFOREX Assist

0 0 Vote
Instructor

Hidden Divergence Signals in PFOREX Assist

Ninety Second session - PFOREX Assist Tutorial

Welcome back to Forex professional training.

In this session we will review;

  • Applied Hidden Divergence strategies
  • The Hidden Divergence examples in PFOREX Assist

Hidden Divergence

The Hidden Bullish/Bearish Divergence shows continuation trend direction that is detected by applying Awesome Oscillator that was created by Bill Williams. There are some suitable courses about Hidden Divergence in Education section for required trading knowledge to use this strategy.

The provided strategies using Hidden Divergence are;

Hidden Divergence Signals in PFOREX Assist - Continuation Strategy

Candlestick

In case that a powerful reversal candlestick pattern appears on the area that Hidden Divergence is detected then a signal is generated. The Overbought/Oversold conditions by RSI/Stochastic also confirm the trend direction.

The specifications of this strategy are as follows;

  • Market type: Trend & Range market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Hidden Divergence, Reversal candlestick pattern, Awesome Oscillator RSI and Stochastic
  • Entry Price:
    • Buy Order: Bullish reversal candlestick pattern with Hidden Bullish Divergence
    • Sell Order: Bearish reversal candlestick pattern with Hidden Bearish 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: Divergence/Convergence

Now let’s check some examples of this strategy.

On EURAUD price trend, the Hidden Bullish Divergence has been detected by applying Awesome Oscillator. The last valley on which the Hidden Bullish Divergence area has been detected includes bullish candlestick pattern to confirm the upward trend.

Hidden Divergence Signals in PFOREX Assist - Candlestick - Bullish

On the next example, after comparing the peaks using the Awesome Oscillator, a Hidden Bearish Divergence is detected to specify the bearish area. Crossing the level 70 by the RSI line in addition to an Engulfing candlestick pattern on the char price peak confirm the bearish trend.

Hidden Divergence Signals in PFOREX Assist - Candlestick - Bearish

Classic Pattern

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

The bullish signal can be generated after a bullish classic pattern is detected while Hidden Bullish Divergence is indicated by Awesome Oscillator.

The bearish signal can be generated after a bearish classic pattern is detected while Hidden Bearish Divergence is indicated Awesome Oscillator.

The specifications of this strategy are as follows;

  • Market type: Trend & Range market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Hidden Divergence, Classic pattern
  • Entry Price:
    • Buy Order: Breaking the Neckline or resistance line toward up
    • Sell Order: Breaking the Neckline or support line toward bottom
  • Stop Loss:
    • Buy Order: Below the Head of Head & Shoulders, Below the valley of Double Bottom, Below the last valley of Pennant, Triangle, Flag and Wedge
    • Sell Order: Over the Head of Head & Shoulders, Over the peak of Double Bottom, Over the last peak of Pennant, Triangle, Flag and Wedge
  • Take Profit:
    • Buy Order: Half or same as Height of pattern over Neckline
    • Sell Oder: Half or same as Height of pattern below Neckline
  • Confirmations: Divergence/Convergence, Reversal Candlestick pattern, RSI and Stochastic

Now let’s check some examples of this strategy.

On the bearish trend of EURJPY, a double bottom pattern has formed. The Hidden Bullish Divergence on the valley of the classic pattern is detected by our system after applying Awesome Oscillator to confirm the upward direction. After the price breaks the neckline toward top it is speculated that it would increase further more.

Hidden Divergence Signals in PFOREX Assist - Classic Pattern - Bullish

The next example shows a bearish signal in which a Hidden Bearish Divergence area is detected by applying Awesome Oscillator on the peak of formed double top pattern. The neckline shows the Entry Price of this signal.

Hidden Divergence Signals in PFOREX Assist - Classic Pattern - Bearish

Divergence/Convergence

After Hidden Divergence area is detected, Divergence/Convergence by applying RSI or Stochastic confirms the trend direction.

The bullish signal is generated after the Convergence is detected on the area where Hidden Bullish Divergence is identified.

The bearish signal is generated after the Divergence is detected on the area where Hidden Bearish Divergence is identified.

This strategy is created by applying a reversal strategy by Divergence/Convergence with the continuation strategy by Hidden Divergence.

The specifications of this strategy are as follows;

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

Now let’s check some examples of this strategy.

The EURUSD chart pattern formed a bullish long trend in which a Hidden Bullish Divergence area is detected by applying the Awesome Oscillator to identify future bullish direction. A Convergence is detected by applying RSI on the last valley to confirm the reversal spot toward top.

Hidden Divergence Signals in PFOREX Assist - Divergence/Convergence - Bullish

The next example shows the Hidden Bearish Divergence area on EURUSD in H1 time frame to determine the future bearish trend. After a small upward direction, a reversal spot is detected after Divergence appeared by applying RSI indicator. A powerful Engulfing candlestick confirms the bearish trend on the reversal spot.

Hidden Divergence Signals in PFOREX Assist - Divergence/Convergence - Bearish

Notices

Applying Hidden Divergence strategies by other confirmations will deliver highly reliable signals.

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.

Tags

More

Comments

Copyright © 2011-2019 PFOREX.COM | Professional Forex School | Cashback and Rebates