In this Monday review video, Jordan walks viewers through his systematic approach to trading divergences within market cycles. He explains why the most profitable divergence trades occur after a corrective phase ends, when pull‑backs are likely to precede a strong move. Using EUR/JPY, Aussie/Kiwi and a QIN pair as live examples, he demonstrates how to spot histogram divergences, identify false breaks, draw confirming trendlines and level zones, and evaluate candle patterns for entry timing on 1‑hour and 4‑hour charts. Jordan also covers risk management, recommending smaller position sizes (0.2‑0.3% of equity) for aggressive entries and moving stops to breakeven to create near‑risk‑free trades. He stresses the importance of multiple confirmations, patience on higher timeframes for part‑time traders, and continuous practice to shift from aggressive to more conservative entries. The video ends with calls to join his free Telegram channel and the Traders Academy Club for deeper education on market structures.
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Hello traders, this is Jordan, and as per our tradition on Mondays, uh, we do the review videos for the strategies. In this video, we're going to be talking about the Divergence University trades. Now, in terms of divergence, as the market becomes more volatile and we are inside trending patterns or structures, usually the number of trades is dropping. Why? Because when you have this, what you can do is attack, um, the pullbacks and go with the trend, right? Once the given trend is finished and these cycles are finished, then we expect to see pullbacks. And usually this is the place on the different timeframes, of course, but this is the place where the best divergence trades occur. Why? Because then we can expect a very large, nice move to happen. The next best possible place to be trading divergences is once the corrective part is finished. So let's say this is your trend here. And this is your correction, right? So once this is finished and confirmed, we can start attacking with divergences for the next possible strong move. Basically, this is where we aim to get most of the pips. Of course, I'm not saying we trade just that, but if you're just starting to trade and you're learning how to trade with divergences, this is where most of the money is, and this is where most of the pips. Okay, so you could try to focus on this kind of situations at least in the beginning. This week starting with the euro yen, and as we mentioned cycles cycles cycles. This is the first part we got here the divergences, which means we are expecting the price to give us pullbacks and likely to continue lower. Personally, I see that as a double wave, and on the second part of this double wave, meaning from here to here, we also get this kind of structure. In terms of histogram, we got the divergences since pretty much the first breakout, which is right here, okay, with the first high. Then we had the second one as well. And that means we now have false break number one, and here we start looking for false break number two, which is also in place. And then we can confirm with MAs, which started pushing lower as well. Now, in terms of candle patterns, I don't like it much. Usually, when attacking divergences. In order to confirm, uh, with a candle pattern, we need to see stronger candle, right? Or we need to see candle which is creating a big spike. Here we did get a candle with nice spike right here in the beginning and then consolidation zone. It was a bit more trickier right here, right? We didn't get this massive push lower, but on the other hand This kind of trading where the candle is not large means the protection is usually very tiny. And if it starts the move, if it starts, then you have plenty of room to attack to the downside. And that means you can be automatically lowering the risk, right? So if usually you're doing 1%, here you can be doing 0.3 or 0.2. Because it's a bit more aggressive, but the risk-reward ratio is going to cover the rest. So 0.3 could be again making 1% or percent and a half depending on how you want to split it. What else we have here? Divergences we want to confirm with nice good levels. So we have the trend line from the top which is perfectly fitting. Okay, we have from the lows The zones that we can mark later on, and of course this is a micro zone right here. This is where the price stopped. This is where the price stopped. We have these highs here. This spike overall we can see that that zone is a good level, right? It's it's pretty much clear, and we're currently inside that zone plus the trend line as mentioned before. So. Aggressive attacks. Well, aggressive in terms of candle patterns. Everything else, in my opinion, is more than enough. So euro yen four-hour chart was based on that, and price simply pushed higher and continued. So better get out. And if anything, you can always attack second time. You can always attack third time with divergences. This is the thing: if you're trying to catch the end of a given move. You should be expecting that many times the price will be kicking you out. And once you have enough practice, you will see how you're slowly, slowly probably starting to switch to a bit more conservative entries, meaning that you will be paying much more attention to the levels that you're attacking. You will be paying much more attention to the timeframes that you're using, and of course to The candle patterns and anything else basically that can be helping you. Multiple confirmations. All right, next we have Aussie Kiwi for the buys, and we actually covered this pair in the previous video for the SRS. So if you're interested, you can watch also the SRS Pro performance. But basically here we have double wave down. We started getting the divergences Even from that zone, as we can see from this is the big structure, right? This is where we got also false break divergence. Then this thing continued lower, and it managed to create false convergence. Okay, and then we got the push up. Now this didn't technically speaking. Broke above the previous high, but that created everything that an impulse has, right, inside this structure. And basically, this is where the focus became bullish. Impulse, ABC, we were looking for bullish continuations, and this is where the divergence is coming in play. And if we can split, by the way, this could be interesting for some of you guys. If not, please fast forward. But if we can split the different styles of trading, divergence is usually the very, very early adopter or the very early signal, depending on how you want to put it. Why? Because this is impulse, pullback. Let's say you're looking for impulse, pullback, ABC, and then breakouts. You could be attacking trendline, you could be attacking the high, you could be attacking the break of this, you could be attacking pullbacks and then buys, right? All these things are coming after 1, 2, or 3 steps further beyond. And the positive part there is that you are confirming this trend. The negative part is that sometimes you will be missing entries if you're waiting for pullbacks. The price runs away, and so on and so forth. Right? Then when you look at divergences, you're attacking right here at the very end of what you expect to be an ABC. Okay? And again, we have a trade-off. What if it's not and the divergence fails? Then you lose money. Right? But if it does. And especially if you're using risk reward in your, um, in your method of trading, plus reading the market cycles and so on and so forth, you can be enjoying very nice trades when it comes to divergences. Okay, so, uh, that's about Aussie Kiwi. Why am I not able to close it? QIN, last one and we are done. QIN here, the situation is a bit more complex, but let's focus on the final part right here because this is not the Traders Academy Club. We want to be focused on only what we are looking at, and basically this is divergence. Remember what I said in the beginning, guys, we have a structure market structure, which is telling us that this is most likely a cycle on its own. Now, technically speaking, this is probably suggesting continuation higher if we get certain conditions met in this case. But what we are focused on is that we need to see pullback here. Pullback or reversal doesn't matter. We're expecting bearish move based on this structure. This structure is also Showing that actually the indicator is showing that we have divergence. Perfect. Then let's see what do we have in terms of levels. We can draw trend line, which is fitting perfectly in this case. We can try to look for levels, and this level will be too far away. We don't need it. This one starts to look more reasonable. Okay, that spike right there. We have a nice zone right here. I'm not sure if you can see it, but probably you can zoom in later on. And most importantly, look what do we have on the left part— this beautiful consolidation zone. You can put the extreme levels there. We don't need the bottoms, but basically anything from that point and up is something that we're interested in. So what I would be usually doing is I start drawing lines. This is not really What I'm looking for. Then I have another one. Then you have another one in the middle, and it's catching this part here, this tiny consolidation inside a fantastic move up. And basically, you, you get the point, right? Draw a few lines, see where things are meeting. In terms of things, I'm referring to lines. And let's say that right here Inside this box, we have a very good level. Divergences—we have this kind of structure there. Bearish candle pattern closing below, creating here a false break, and then we're looking for the attack. I think this is more than enough evidence that we have, and this is again the beautiful part. If you figure out all these things, which as you can see they are not that complex. It's all about drawing lines and figuring out what is a very good level. Because with divergences, we attack the very, very end of the given trend. And then we need not that much in order to put some money in the pocket, or at least move the stop loss to breakeven, which is already half— half of the trade is there because it becomes a risk-free trade, right? So now we don't really care if this is indeed going to be pullback and continuation or is going to be complete reversal. We put the money in the pocket. We picked a fantastic level, and when you put a few simple confirmations on the table, pulling the trigger on the sell becomes a very easy job. And again, look at it—just few trades, right? We don't need. Hundreds or tens of trades every single week. If it's not there, wait for it. Especially if you're trading part-time and you're working with the higher time frames. Well, one hour chart, let's let's say it's intraday, but four hour chart for me starts to be the bridge between intraday and a bit more to the swing to the higher time frames, right? So if you're trading age four and above, be patient. No rush. Wait for the perfect setups, or at least coming as close as to the definition of perfect, and then you attack. So that would be all about this week's video. Of course, make sure to check out our free Telegram channel, guys. We have the link below. And if you're interested in this kind of market structures and the things that I was talking about. In order to master them and to learn how to use them in your trading, because that applies to literally any strategy, right? It doesn't just apply to divergences, breakouts, trend lines. No, this is the core, and then based on that you can apply anything for the actual entry. So if you're interested in this kind of, um, education, check out the Traders Academy Club. Again, the link could be found below in the comments. And if you have any questions about the setups I, I talked about today, leave your comment below, guys, and it will be answered as soon as possible. Wishing you a fantastic week. Bye for now.
