Divergence University - How to Spot Best Divergence Setups

Hello guys, time for our weekly review. The week previous week started from the 26th, which means we will be covering from 26th up until the 30th, and that means we're starting right here with Kiwi franc. So This is what we have for the first one. That's our 4-hour chart. Of course, you can see that right here. And in this scenario, we have multiple options. Of course, the bigger trend line would be something like that, and then we have one more, and here we have one more. As a matter of fact, sorry about this. As a matter of fact, we really don't, uh, care too much about the other lines, but we should be caring about this line. All right, I just wanted to show that there could be multiple possibilities, but we have this at the moment, right? And that would be entirely correct. It is entirely correct, which means we can be using this trend line. At least I'm using it. If this is confusing and you're not really sure, let me just grab the rectangle. You can check out the horizontal levels, and they're pretty obvious if they're available or not. So starting from here, making our way through that, this is a zone push bounce attempt again. This is where it stopped, right? Basically, um, here as well, push consolidation continuation. Here also created the top, and so on and so forth. Overall, I think this is a decent level. We can find levels, of course, above and below, but this is pretty much where I would be looking for sell because this is also the trend line. And now I have this zone which gives me 2 levels at the same place. That's the first thing, right? Next We should try to figure out what kind of cycle we're working with. Now this one could be interpreted in multiple ways. We can drop to the lower time frames and start counting something like this, right? We can also be counting because on the four-hour chart this is a decent level wave for me like this, or some might be even looking looking at it as first wave. Pullback, second wave, and immediate rejection. Now, I don't like this scenario because, uh, it's clear that here we have much larger wave than here, and that's why this double wave I wouldn't consider. What's important, however, in this case is the divergence. And back to the basics, we have a level, level 1, level 2, Coinciding, price is testing this zone, divergence formed. That's all. All right, and of course we have the false break. So I think this is, um, a decent place to, to look for attacks. And unfortunately this one pushed higher, stop was here, but overall I think you will relate to why this trade was taken. Next we have pound CAD, and for pound CAD, uh, we've been bullish inside the live trading room. So the idea here was simple. We first of all— maybe I shouldn't be talking about the, the price action so much, uh, but let's try to make it as simple as possible, which means we had first wave Okay, and then breakout, continuation higher, breakout above this high, and overall the price started gaining momentum. We can see it inside this wave, we can see it inside that wave. The price started gaining momentum. Nothing right here against it, right? There are no divergences from that last part. And on the opposite side, we do have divergence right here. This is bullish hidden divergence. So once the price pushed lower and we got next to this zone, right, we have the trend line, we have the horizontal level, divergence ticks. We're looking for buys. Okay, push up, consolidation, another wave, and we have the targets right next to the swings. So pound CAD worked out pretty nice for the sells also, by the way, because then we completed a structure and it wasn't the optimal level At least the optimal level for myself. But we got a pretty decent pullback after this structure, so even the sells in this case would be working out. EUR/CAD. EUR/CAD is, in my opinion, showing us right this 5 legs to the upside, right? We had first divergence. Right here, and then we have another divergence afterwards right here, and then we have divergence on the inner part of this one. False breaks pretty much everywhere, and basically once the price pushed lower below and created these false breaks, the attacks started. Now in this case That could be a bit too much. So if that happens and you're looking for slightly better risk-reward ratio, you might want to wait for the price to give you just a few pips pullback, right? And then look for the attack. So this is also a possibility depending on your trading style and strategy. And if you take a look, you'll see what I mean. Just a few pips, right? Up until here somewhere. So you could be saving a few pips, and then actually that could be turning— well, not really. It would be a bit forced to say it would be turning into profit now. But anyway, um, the pullback, this is what was important. So this one failed. Such trades, by the way, it would be useful if you can monitor them, because if you have impulsive structures and you're going to trade against, which means you're trading the pullbacks, it's usually a good idea to be around and manage your trades. Sometimes, of course, as you can see, it's not possible, so nothing we can do about it. Uh, here we have AUDJPY. This is the one-hour chart, and overall, Aussie yen, we've been trying to sell, sell, sell, sell, sell. This structure I was personally following in the live rooms, and we had this idea from here, okay, for continuation lower. Then we had another double top here also. So all these are opportunities for sells, and we all know how this thing worked out. It simply dropped like a rock and moved and moved and moved. So when you have decent levels and when you have divergences, and if you know a little bit about waves or cycles, market flow, you will be more than enough, guys. I mean, really go, go back and check out all the videos we've been doing since 1-2 years before. It's all about the same things: levels, levels, cycles. And then you want to have a bit of volatility. Just like imagine you have some kind of divergence right here, right? This is not a volatile condition right here. Or this, for example. This is— let's say this is divergence of some sort. You can't really call that a move, a wave. Or this, this is not a wave, right? This kind of things you want to ignore. Like this one probably could be tradable because look at that. But then imagine you're trying to buy here. Is this a decent move? No, it's not, right? You want to be looking at nice beautiful structures and moves which the market is creating, and then hidden divergences, regular divergences, hidden divergences, regular divergences, and so on and so forth. Um, all right, so I guess that's about Aussie yen. Let's— Kiwi dollar. For Kiwi dollar, we had pretty classical situation. Um, that was a very nice decent level from the daily chart. We had some moves here that kind of started reminding about head and shoulders. So basically this zone was around, um, what I expected to be a left shoulder, but it doesn't matter because this is where we have a level, right? This is where we have spikes, and that came from daily. Then we had this which started to remind some kind of channel, right? We had the wavings inside of it, and so on and so forth. But overall, once we came closer to this zone, M I S divergence finished, right? And this is where we got four-hour chart again. This is where we got a nice false break. You can see the moves here, two waves on the inside of that one, and. Basically, it was a good trade, good level, good everything, which managed to push down, create this structure, and, uh, later on did something like that. So overall, overall, Kiwi dollar, fantastic opportunity as well. So that would be all for this week, guys. If you have any questions, leave your comments below. Don't forget to check out our free Telegram channel. You can find the links, uh, below in the comments. Wishing you a lovely week. Stay safe. Bye for now.