Recurring Pattern with Divergence and Trading It Automatically with Expert Advisors
When divergence is combined with a price action trigger like The Alien Wash indicator and trading in a higher timeframe, it has the ability to show major reversal points.
Combine the divergence indicator with The Alien Wash Strategy. Get your Alien Wash Course (Module 1) for free.
Use it to identify price trend reversal. When a classical divergence occurs near to strong support or resistance level, it gives best results.
Use it to identify price continuation pattern. When hidden divergence occurs in a strong trend, it is a very powerful indication that price will continue to move in the current direction.
Case Studies with live trades
Oil has been trending upwards for various months. In the longer timeframe, trend is up for Oil.
In the current trading timeframe, a trader can use divergence indicator to show trend reversal and thus time his/her entry.
Divergence indicator shows a classical bullish divergence and hidden bullish divergence in oil before price exploded upwards. Such divergence signal usually happens faster than actual price movement, therefore, it is a very fantastic way to spot trade into a sweet spot.
Both divergence signals are built into The Alien Gift Robot. This ensures that The Alien Gift Robot finds a valid turning point and also reduces number of false signals drastically. This is not surprising that TAG2 Robot got into Oil trade at a very attractive price!