This is a good opportunity to test this trading system real-time on gold (example 3).
After a clear downtrend price formed the first higher high (convergence). We confirm it on oscillator and mark the level of convergence as our target.
I recommended in this trading system a pullback to the 0.61 fib AT LEAST
Then we switch to the next lower TF (in this case H4)
We see two bullish divergences already in play (regular and extreme divergence).
We add two additional level of S/R, not too far, not too close. Those will be our entries just in case price moves lower.
Stop loss below last level of S/R (the same for all entries)
Lets see how this works.
Regards.
*****************DISCLAMER********************************************************************
Always do your own analysis before opening a trade.
Any respectful and constructive ideas are welcome (agree or disagree).
Follow me on Twitter for updates: @fxtrader2000
After a clear downtrend price formed the first higher high (convergence). We confirm it on oscillator and mark the level of convergence as our target.
I recommended in this trading system a pullback to the 0.61 fib AT LEAST
Then we switch to the next lower TF (in this case H4)
We add two additional level of S/R, not too far, not too close. Those will be our entries just in case price moves lower.
Stop loss below last level of S/R (the same for all entries)
Lets see how this works.
Regards.
*****************DISCLAMER********************************************************************
Always do your own analysis before opening a trade.
Any respectful and constructive ideas are welcome (agree or disagree).
Follow me on Twitter for updates: @fxtrader2000