II -> Divergence - Annotation Tips
Spotting divergence can be tricky, so here are a couple of tricks to help out with that.
————-- 009 - Divergence Trick
A very neat trick to help you spot your divergences is to flip your chart.
- Option + I ( on mac )
- Alt + I ( on windows )
This can flip your charts on tradingview and will help you spot your divergences easier.
Come take a look.
You see by flipping your DXY graph it becomes very clear that the crack in correlation is taking place, which most likely shows the injection in fuel within liquidity to tackle the anticipated move you want.
In this case you can clearly see that the correlation is flawed.
————-- 010 - Final Says
Divergences should be an additional tool, to build potential confidence in your position. It should not be seen as the make all break all factor for your trade.
Dont rely on it blindly, by just accepting any type of divergence there is. If it structurally lines up for the move, its a great added bonus.
Divergences should be used in combination to gain more trust in the first break of structure, and OTE that follows after a divergence takes place.
Something like this.
In this case we have bullish orderflow. Price leaves a weak high rollover, which we mark as BSL.
Price pulls back into discount PDA, and forms a lower low. It runs previous SSL. Lets imagine now that on DXY we have a divergence. So where EU, lets say, in the above example made a lower low. And instead of seeing a higher high on DXY we see a lower high. That is then confirmation for us that the tides are about to shift.
————-- 011 - Another tip
Another way of checking out divergences is to add the symbol and compare it with your primary pairs on one chart.
Here you press the + icon and you can compare or add symbol
https://www.tradingview.com/x/2VgGWZ3Z/
Here you can spot them easily by just comparing price.
EU in this scenario printed another higher high,, you would expect DXY to print a lower low then.. But it fails to do so, and prints a higher low.
That is our crack in correlation, and you can see how price then makes up its mind and chooses a direction to expand to.
————-- 012 - Final Prerequisite
When you notice a divergence on DXY just remember to be nimble.
Slow down, forget about your bias for a minute, and take a neutral standpoing. It will help you avoid traps in the market.
So when you spot the cracks in correlation, just be wary of where the divergence runs into.
In the example below, it can often enough be seen that the divergence will run into an opposing PDA and then take off from there.
————-- 009 - Divergence Trick
A very neat trick to help you spot your divergences is to flip your chart.
- Option + I ( on mac )
- Alt + I ( on windows )
This can flip your charts on tradingview and will help you spot your divergences easier.
Come take a look.
You see by flipping your DXY graph it becomes very clear that the crack in correlation is taking place, which most likely shows the injection in fuel within liquidity to tackle the anticipated move you want.
In this case you can clearly see that the correlation is flawed.
————-- 010 - Final Says
Divergences should be an additional tool, to build potential confidence in your position. It should not be seen as the make all break all factor for your trade.
Dont rely on it blindly, by just accepting any type of divergence there is. If it structurally lines up for the move, its a great added bonus.
Divergences should be used in combination to gain more trust in the first break of structure, and OTE that follows after a divergence takes place.
Something like this.
In this case we have bullish orderflow. Price leaves a weak high rollover, which we mark as BSL.
Price pulls back into discount PDA, and forms a lower low. It runs previous SSL. Lets imagine now that on DXY we have a divergence. So where EU, lets say, in the above example made a lower low. And instead of seeing a higher high on DXY we see a lower high. That is then confirmation for us that the tides are about to shift.
————-- 011 - Another tip
Another way of checking out divergences is to add the symbol and compare it with your primary pairs on one chart.
Here you press the + icon and you can compare or add symbol
https://www.tradingview.com/x/2VgGWZ3Z/
Here you can spot them easily by just comparing price.
EU in this scenario printed another higher high,, you would expect DXY to print a lower low then.. But it fails to do so, and prints a higher low.
That is our crack in correlation, and you can see how price then makes up its mind and chooses a direction to expand to.
————-- 012 - Final Prerequisite
When you notice a divergence on DXY just remember to be nimble.
Slow down, forget about your bias for a minute, and take a neutral standpoing. It will help you avoid traps in the market.
So when you spot the cracks in correlation, just be wary of where the divergence runs into.
In the example below, it can often enough be seen that the divergence will run into an opposing PDA and then take off from there.
————-- 009 - Divergence Trick
A very neat trick to help you spot your divergences is to flip your chart.
- Option + I ( on mac )
- Alt + I ( on windows )
This can flip your charts on tradingview and will help you spot your divergences easier.
Come take a look.
You see by flipping your DXY graph it becomes very clear that the crack in correlation is taking place, which most likely shows the injection in fuel within liquidity to tackle the anticipated move you want.
In this case you can clearly see that the correlation is flawed.
————-- 010 - Final Says
Divergences should be an additional tool, to build potential confidence in your position. It should not be seen as the make all break all factor for your trade.
Dont rely on it blindly, by just accepting any type of divergence there is. If it structurally lines up for the move, its a great added bonus.
Divergences should be used in combination to gain more trust in the first break of structure, and OTE that follows after a divergence takes place.
Something like this.
In this case we have bullish orderflow. Price leaves a weak high rollover, which we mark as BSL.
Price pulls back into discount PDA, and forms a lower low. It runs previous SSL. Lets imagine now that on DXY we have a divergence. So where EU, lets say, in the above example made a lower low. And instead of seeing a higher high on DXY we see a lower high. That is then confirmation for us that the tides are about to shift.
————-- 011 - Another tip
Another way of checking out divergences is to add the symbol and compare it with your primary pairs on one chart.
Here you press the + icon and you can compare or add symbol
https://www.tradingview.com/x/2VgGWZ3Z/
Here you can spot them easily by just comparing price.
EU in this scenario printed another higher high,, you would expect DXY to print a lower low then.. But it fails to do so, and prints a higher low.
That is our crack in correlation, and you can see how price then makes up its mind and chooses a direction to expand to.
————-- 012 - Final Prerequisite
When you notice a divergence on DXY just remember to be nimble.
Slow down, forget about your bias for a minute, and take a neutral standpoing. It will help you avoid traps in the market.
So when you spot the cracks in correlation, just be wary of where the divergence runs into.
In the example below, it can often enough be seen that the divergence will run into an opposing PDA and then take off from there.
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