Divergence University reviews five recent trades across USD/CHF, QVN/QYN, oil, EUR/GBP, and AUD/CAD, analyzing chart patterns, divergence signals, and false breaks. The oil trade won with a 61.8% false break and Bollinger Band confirmation. Four trades hit stop-losses, showing how price reversals and false breaks can erase divergence signals.
Chapters
Hello everyone and welcome to the weekly review of the Divergence University trades. Dollar franc is the first one we were looking to sell here, and this one failed pretty much immediately, right? It pushed up on the very next candle, kicking this trade in, uh, stop loss. Now, if we go back to check out the live chart, I would like to show you where and how it all started. Now, on the 4-hour chart, we have this tiny zone here which acts as our resistance zone, and it's all based on this tiny candle right there, as we can see, right? So nothing crazy, nothing huge, but it's still a zone that we can rely on. Plus we can see that there are no trend lines available at that very moment, right? The trend line will be meeting us only right here at the top. So that's the first thing, levels. Then we're checking for hidden divergence, which was present at that very moment right here. Okay, and then we can drop to the 1-hour chart where we got the first false break. This is where we got the second false break, and of course The divergence which was supported right here. So that's pretty much the idea behind this trade, which as we said lost. Excuse me. Next one, QVN, which provided the entry right here. I'm not really sure if you can see it, guys, but of course you can always come back later. To this website and check it out. So this is where the entry happened right here, again after multiple false breaks. And what we're looking for is nice drop which was slightly above the previous swing high right here, which is good. Usually we want to see the, uh, the target level to be above the swing low or below the swing high, right? We don't want to be just a few pips below. If this is the swing high and our target is just a few pips below it, it's a bit more aggressive. But if you're sticking to the risk-reward ratio, that's also fine. I'm just mentioning that here. So QYN, let's go ahead and check out the live chart. This is where the setup happened. Let's market for the higher time frames. Uh, on H4, we got hidden divergence which started either from this high or from that high, and by pushing there to the upside, we managed to break above, forming the hidden divergence, the actual hidden divergence. One thing which is more aggressive in this setup is the lack of filling this gap. Okay, this is something which I would prefer happening because in such cases when the price attempts to go ahead and fill the gap, we could easily just spike once again before the actual continuation. So such setup would be slightly more aggressive, but overall on the 4-hour chart we can see clearly that this is a resistance zone because after the push lower we had the first stop which was very, uh, shallow and the price almost immediately managed to continue lower. And then once we stopped here, it took deeper breath, right? And then boom, it, it continued lower. Then the slow pullback to the upside, which is definitely— the price action is definitely suggesting further moves lower. And as we said on the 1-hour chart, after multiple false breaks here, okay, we actually got the move lower and much, much lower, to be honest. So if you're holding this position, you're probably gaining some more, uh, to the initial position, right? Another thing to mention here is for those who are trading the swing Okay, you should also be paying attention to divergences in the opposite direction, guys. Again, just a friendly reminder here. I'm not saying you should change your strategy just because I'm saying so, but if you did not consider it, it might be a good idea. Next, we have oil, which was also the second winning trade here out of the five trades. Five, six trades. How many do we have? Okay, and for all we got pretty much the same scenario, right? So far all we have is huge drops, gaps, pullbacks, and a place that we're looking to trade the next opportunity to the downside. Here we got again pretty much same idea. We got one false break and. We got continuing divergence. I would like to go back to the live chart here for a second so we can see what actually happened. Now, what's interesting in this case about this continuing divergence, guys, is the fact that we actually formed, um, all the four highs here. So that would be high number 1, high number 2, number 3, and number 4. Okay, I'm not sure if we created number 5 here or not, but it's pretty much double top for me. So when it comes to, uh, continuing divergence, this is definitely something that I'm paying attention to. The least I'm looking for is 3. In that case, we got 4, which is even better. 61.8 false broken. We attempted to kind of break above it, push down, no break below this low, push up again, and then we got the break below this newly formed low. Uh, we also had This trendline breakout here, which came pretty much at the same time we pushed below the 20 MA. So continuing divergence, top of the Bollinger Bands, and then we got the breakout. All right, so depending on whichever way you're looking to trade that, we had plenty of opportunities. As it comes to oil. Sorry, I forgot to show the exit. This is where we managed to cash out the target. All right, next we have euro pound, which was a massive run to the upside, and this is where we started looking for possible pullbacks after this 5-leg structure. Which unfortunately pushed up and hit the stop loss. So when we go back to the live chart, what we can see here is exactly that, right? We got the 5-leg structure. We got the first divergence which happened here somewhere. Okay, and this is where we got the second false break. This is the first one. This is the second false break, this time with much better candle pattern. I'm talking about the big red candle right here. We got the spike, beautiful spike to the upside, and then engulfing, well, like 4 bars before it. So definitely, definitely worth the attempt in my opinion, and plus We have a fantastic structure, so everything looked pretty much good for this attempt. And as you can see, it just didn't work out. It moved higher, and now this divergence is gone. And we're going to reanalyze this situation today and tomorrow and provide you with the next idea and whatever we're looking to trade here. So this one also kicked out. Then we have Aussie CAD, which is actually the last one. Now with this trade, I personally don't agree too much, right? I'm not the only trader, of course, in the, um, in the team. But the idea behind this trade is very simple. We got the push up, okay? Just ignore this spike for a second. And we started developing here an impulse. That impulse was later on followed by this ABC structure. We also had the hidden divergence here after this ABC. And just to show you how it looked at the exit, this is where it got stopped out. But let's check out also the live chart. So two waves somewhere here. I think that was dentry, right? So check out the four-hour chart, guys. Absolutely fascinating supportive zone, especially this block of candles right here. Look at it. Totally, totally strong level. Same here. So once we are approaching that zone, that definitely is. Okay, then we got the bigger wave, but that was the first one right here. And as you can see, this one simply failed and it moved lower. So nothing more to say about it, actually. Pretty clear in my opinion. So that would be all for this week, guys. I hope you enjoyed that video. I also hope that you're staying safe and healthy. I hope you're staying safe and healthy. If you have any questions regarding these setups, please leave your comments below or questions, and we're going to get back to you as soon as possible. Wishing you a lovely week ahead. Again, stay safe, and I'll see you in the next video.
