In this weekly review, Jordan walks viewers through four recent forex setups, emphasizing risk management when trading correlated pairs and detailing technical analyses for the Australian dollar (AUD/USD) on the 4‑hour and 1‑hour timeframes, a hidden‑divergence trade on the 1‑hour chart, a bullish momentum move on GBP/USD (the "Cable") with divergence and pull‑back considerations, and a bearish structure on AUD/CAD. He explains wave counts, ABC zig‑zag patterns, Fibonacci 61.8 relevance, false breaks, hidden versus regular divergence, and how to size and split trades (using percentages of lot or fixed dollar risk) to protect capital when setups fail. The video concludes with an invitation for viewers to discuss the ideas in the community Telegram groups.
Chapters
Hello everybody, what's going on? This is Jordan and it's time for our Divergence University weekly review. Last week started from the 19th, which leaves us with this 4 examples here in this table that we're going to cover for the previous week. So let's go ahead and start. We can see that with this week we have 3 examples dedicated to the Aussie, right? And there is no way we skip the talk about highly correlated setups— not setups, sorry, assets or instruments. And if you're going to be trading them at the same time— now in this case, this, this is not happening, right? We have different dates here. But in general, if you're trading simultaneously many pairs of the same group or whatever the correlation might be, be careful with the overall exposure. Okay, because let's say you're trading EUR/USD along with USD/CHF at the same time, right? Not in different setups, but at the same time. Strong negative correlation means you're pretty much doing the same trade, right? Giving you extra exposure. So keep these things in mind. I know we mentioned them in these videos very often, but there are new people coming in, so it's really important to To be on the same page with everyone, right? Anyhow, let's let's jump to the actual charts. The first thing we have right here is Aussie dollar four-hour chart. What do we have in this case? At least the way we saw it from I don't know where, but wherever the count started here is that we have a potential ABC, which is a zigzag. Followed by another one. So basically first, second, third, fourth, and then fifth wave, right? The idea is that once this double wave finishes, if these levels manage to hold, there is a good chance we're going to see another low, or at least going to this zone, right? And that means we can go ahead and start looking at this thing, uh, and the cycles we have inside of it. Now, the part I wouldn't really like in this case is right here, because if we measure this wave pullback and then that wave, this is not the same size, right? This is not the same length, so it wouldn't even trigger the 61.8, which would be somewhere around here. Okay, that's the one big question mark in this case. Now, in terms of levels, levels would be confirming what I just said, because if this is your entire big zone, that means these levels could be still tested on the very top. You still have exposure to that zone. Is that a good level? Yeah, definitely. Okay, it is somewhere in the middle. We have it. It is a good one. But you're exposed to this. What do I do in these cases? If I believe this is good enough for a tax, I will use— let's say I'm using 1% now, or I'm using $100 per trade, right? Or I'm using fixed lot of 1 lot, for example. I'm going to split my risk by 50% or 40% or 70% depending on where we stand. Let's say I like it a lot and the only thing I have against is the zone, the optimal level is not reached. If that's the case, I'm going to give it 50 or 60% of my initial risk, right? Depending on whatever risk you're using, fixed lot percentages, fixed money, doesn't matter. I will take part of this, right? Put it here as a first trade and attack. If it works, I make money. If it fails, I still have the remaining portion, which is 50-40% of my original lot size, and I'm going to look for the next attack right here, if provided, right? Sometimes the setup fails completely and you're left with a smaller loss in general. Okay. Next, Aussie dollar number 2. This time we have the 1-hour chart, and now this is the first wave on H4 pullback. That was the first stack breakout, and now as you can see, there is a possibility for us to go ahead and drop to the lower time frames in order to start looking for this next attack from a better level, right? Instead of 4-hour, we drop to H1. So what do we have here? We have first false break, we have second false break, we have the first 4-hour chart divergence, and now this 4-hour chart divergence is once again completed, right? On the 1-hour chart, we don't have the MAs, right? We only have the histogram though. So that would be basically the idea behind it. We would be getting here the hidden divergence as well. So you might be adding furthermore. What do I mean by that? Let's say you cashed out right here next to the previous one, the previous low, I mean, right? You cashed out here without holding for the entire thing, and then the price starts developing pullbacks. Do you have anything against in terms of divergences? No. All you do have is a level right here. So the price is bouncing off of this zone. And it goes to the next levels. Now you get bearish hidden divergence, and that could be an interesting zone to go ahead and attack again. Okay, add-on trades. Hidden divergence is always with the trend. Regular divergence is against the trend, right? Next we have cable. Cable on the 1-hour chart. Cable on the 1-hour chart started pushing now. Depending on the broker, that might be lower, that might be low, doesn't really matter. We are looking at very strong bullish momentum. The daily chart broke this high, creating here divergence, convergence, pullbacks, and this is where, uh, we can actually start looking for the buys. Now, how exactly you're going to handle this situation might depend, and we had a very clear example in the live rooms and basically in the club because for some traders that would be immediately a place to attack with very tiny protection, right? Other people might decide to look for this entire structure and be protected somewhere below but then this becomes a swing trade. So if you have your context and you understand the full picture there are Literally millions of ways to trade it, okay, depending on your trading style and what you prefer to do. But it's very important to understand the larger picture, guys. This is what I'm trying to say. So this attack is basically developed based on, um, the hidden divergence here. Then this hidden divergence creates a false break being turned into continuing divergence. And this is one of the places where the first attack might be followed. And then we have AUD/CAD, where we had a pretty similar situation to the AUD/USD, pretty much structured to the downside, bearish structure, which after the pullbacks, we might be Expecting and looking for continuation down. So 2 waves up, first false break divergence. This level though is being broken, which is not ideal, but we do have another one, and this time this is the zone. So again, in terms of levels, it's probably not ideal because we're somewhere in between 2 zones. However, we can actually see that the price is touching the beginning of the second zone. So one way to trade it is like this, right? Otherwise, you might be either wait for the price to create another push-up, start the attack here, or protect the very top of this zone right here. Because if you get this one more push-up and then down, because this is your level, you might be kicked out and The stop loss might be taken, and then for the price to continue lower. Just an idea or a suggestion. All right, so that would be all for this week's ideas and what we've been following and what we found interesting. If you have any further questions regarding these setups or anything you've been trading during the previous week and you would like to discuss it, Feel free to leave us a comment below or find us in the Telegram groups dedicated to Divergence University. Have a wonderful week and I'll see you next week. Bye for now.
