Divergence University Weekly Review 23 - 27 Sept. 2019

In this weekly review video, the presenter walks through a series of Forex trade setups executed over the week of September 23‑27, 2019. He analyses each trade on multiple currency pairs (AUD/CHF, USD/JPY, EUR/JPY, AUD/CAD, GBP/AUD, CAD/CHF, NZD/CHF, etc.) using chart patterns such as double‑bottoms, ABCD structures, trend‑line breaks, and especially divergence signals (regular, hidden, and MA‑based). For each setup he explains the multi‑timeframe context, entry rationale, stop‑loss placement, and target levels, emphasizing a strict 1:2 risk‑reward ratio versus a more relaxed 1:1 approach. The video also reviews the week’s overall performance, noting a modest net loss of about –0.5% to –1% (≈‑100 pips), and stresses the importance of controlling risk and drawdown. Throughout, the presenter adopts an instructional tone, showing how to identify support zones without indicators, how to manage trades early using divergences, and how to use the review as a trade journal. He concludes by inviting viewers to join a free Telegram group for daily setup sharing.
Chapters
Hey guys, how are you doing? First one, let's start from the bottom and go through the top. Aussie franc. Now actually, I'm gonna zoom in a bit so we can see it clearer. Okay, so what do we see here, guys? We see A bigger double wave, double bottom here with one leg divergence, which later on transferred to a regular divergence, which is the negative, positive, negative. And then we got one more spike here creating another false break right there with a candle bottom. Uh, so that's about the 1-hour chart setup. If we go back— excuse me— to the, uh, 4-hour chart, we can notice this very interesting level that formed right there. I'll remove the lines for a second. Look what happens here. We have a very strong push down, consolidation, again another push lower. Tiny consolidation and then move. Okay, and that place— this is where the price stopped to rest, which means we have a very strong level right there. And this is exactly where our setup appeared on the 1-hour chart. So if we place the lines once again, you can see that on the move up again, we had here some hesitation of the price, after which it moved higher. So this is how we basically identified the level that we were trading. Unfortunately, this one did lose, and this is where we got the stop loss. Now, if you're trading with fixed— not fixed, but risk-reward ratio of 1:1, you would be getting slightly more than 1:1 in that case. So target 1 would be reached, and most likely you got Out in break-even. That's perfectly fine. However, for us, when it comes to the divergences, we are applying strict one-to-two risk-reward ratio, which means we're looking for this distance to be twice. Okay, so that's why this trade ends up in a loss. Then we have dollar yen. Which delivered very nice profits. And for Dorian, I would like to go back to the chart and you'll see what's happening here. First of all, on the 4-hour chart, we got this huge bearish pressure that started to form. Our setup was somewhere around here, so that pressure started forming right here, and this is why We saw the initial push, consolidation, next push, consolidation, and this time the consolidation appeared in some sort of flat correction as well. Perfect level right there. Lack of divergence to the downside, we only had divergence on the MAs. And this is where we got hidden divergence between these 2. So you can see it was a very tiny stop loss and basically very good risk-reward ratio in this case. What do we do here? We know that we're expecting for the price to continue lower, so we're either going to be breaking and doing something else, okay? Or we're going to be bouncing off of this trend line, breaking this consolidation pattern, and continuing lower. As you saw, we continued much lower, but when you have this kind of risk-reward ratio, we just simply went ahead and cashed out. Why? Because this is also near the bottom of the range. That means once we cross here, there is a good possibility for the price to create divergence. And if it creates a divergence, we want to be getting out and cashing that position. Okay, uh, so this is how the setup developed. Basically, one straight push lower in one candle and more or less we managed to get the profits immediately. Then we have EUR/JPY for buys. And for EUR/JPY, it's more or less clear what's going on. Beautiful ABCD pattern. We are bouncing off of this zone here. This is our supportive zone, this entire place. And how do we pick these support zones? Very easy, guys. You don't even need indicators. All you need to do is see and check where the price stopped most of the times. And when we look back, we can see that this is where we got some hesitation around this zone, then spikes, spikes, spikes. The price is simply holding here. All right, so When we got the divergence that we were looking for after ABCD pattern, the expectation is for the price to continue higher. And this is why we got the attack here again. Stop loss immediately before the low, so if it doesn't work, we get out of this trade immediately. Another one, Aussie CAD. Very similar situation to the one before, but this time we have corrective pattern to the upside. So what's the overall situation here? We have impulsive move to the downside, we have ABCD pattern correction, which means we are now expecting to see the price continuing lower. Since we're dealing with divergences, that gives us the best and optimal risk-reward ratio. It's not like, uh, of course you might be trading trendline breakouts or the lows, doesn't matter. But you can see that in this specific case, the risk-reward ratio, when we compare the divergences and the other entry methods, it's huge difference. As simple as that. So besides the divergence, we also got here the false break, another attempt on the lower time frames here to move higher, second time failing. And this is where the attack comes, few pips above it, stop loss, and we are attacking. Um, again, the risk-reward ratio allowed us to cash out Just a few pips below the previous low. Okay, and this is one of the lovely parts of trading divergences. You are getting in a trade very, very early. So by the time other traders are joining here with breakouts, for you it's already time to cash out. All right, so that's about Aussie CAD. Let's cover a few more. I don't want to take too much of your time. After all, the idea here is to Show you the process of thinking and the process of analyzing the chart when you are pulling the trigger. So pound Aussie, one more setup here, looking for buys. What we got was now some will cover it like this, which will give us a three wave structure. Some will count it like that. Bottom line is this is a completed cycle in a bullish move. That means we are expecting to see either pullbacks or full continuation up. Okay, doesn't matter. What we're expecting is bullish moves. That's the bottom line. So as we can see, that was a previous breakout zone. Divergence at the end of this cycle. First attempt to create divergences. Now we can't really call this one a divergence here because that was more or less a flat move, okay, with this ABCD inside of it. But I wouldn't count here— accounted for divergence or trade it, okay? That would be a bit more aggressive for my taste. Now, however, after this move, we got the drop lower, and now things are a bit more clearer. And after the candle closed, nice bullish candle attacked. Now, as you can see, immediate stop loss afterwards, and the price continued lower. So that's about pound Aussie. Then we have CAD franc. And for CADCHF, the idea is also kind of nice, even though it didn't work out. Basically, this week we had a loss. I believe, uh, we ended up somewhere around -0.5% or -1% with around -100 pips. But this is part of the game, guys, and you should not be afraid of these situations, okay? We cannot always win. It's a business. Just like in any business, you have ups and downs, right? Trading goes like that almost all the time. The important part is to keep the risk under control and to keep the drawdown under control, because this is going to, uh, really affect you if you're experiencing Let's say this drop down is 50% of your account. It will become scary, and then you gain 200%, and then again another 70% drop. No, it's meaningless to do it like that. Keep the control under, uh, keep the risk under control, sorry, and you will be fine. So back to the setup. Trend line from the top, okay? Beautiful, magnificent zone. Look at it. Just look at it. Amazing. So the price is coming to this place. We have the hidden divergences, and this is where the attack is triggered for these possible sell opportunities. Unfortunately, we got the push up, breakout above the highs, and the trade is of course killed. By the way, CADCHF developed very nice afterwards and triggered the bullish scenarios, which we are going to cover in another video. Uh, well, actually 2 more left, so let's go ahead and cover them really, really quick. USDJPY, hidden divergence. Okay, after all this Setups we got before that, all of those were were for sells. Okay, so here we have once again a sell setup, this time based on hidden divergence, beautiful bearish candle pattern, tiny pullback, and we are looking for the attacks. In terms of levels, we have this one basically. That's the whole place, right? So here we have pullback inside that zone, divergence formed, candle pattern, looking for the attacks again with a very nice risk-reward ratio. And unfortunately it pushed higher. And last one was Kiwi franc. Uh, this is also the one that we were looking for a buy. The idea is simple: impulsive move, pullbacks, price is holding above. We're expecting to see 5-leg structure here, basically to create this bigger ABCD. And this is where the divergence attack comes in place. From these lows, the swing lows from before that, we get this kind of situation, which is a bit forced ABCD, but I think it could be used for it. And as you can see, we did trade it. Level, first of all, in place. Check. Divergence appears and we are attacking. So this one also immediately smashed this trade, hitting the stop loss. So that's about Past week's performance. Of course, you can check out all of it. I did select here in the results a date range. You can just select show all of them. And the bottom line for this performance here is not to brag how much we make or how much we lose. The idea, guys, is to help in the educational part. You can see the trades we are taking, and with these videos We will try to really put the focus on why we did take these trades. Okay, and of course we can use it as a journal where we can see the results, how everything is developing. And that's that's basically all guys. What else we can say? Like, share, comment if you have questions. Don't forget to join us. In our Telegram group. It's absolutely free, where trading setups are shared basically on daily basis. So that would be all for now. Thank you.
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