Divergence University Weekly Review - November 25th 2019

In this weekly review, Jordan walks viewers through a series of recent forex trades that were selected using divergence‑based analysis, a core teaching of Divergence University. He begins by defining divergence, distinguishing regular (trend‑against) from hidden (trend‑with) signals, and stresses the importance of confirming these signals at strong supply/demand zones, Fibonacci levels, and trendlines. For each trade – Kiwi dollar (NZD/USD), USD/CAD, EUR/CHF, EUR/AUD, GBP/AUD, and EUR/USD – Jordan details the chart pattern (e.g., multi‑leg structures, double waves, V‑patterns), the divergence type, entry and stop‑loss placement, risk‑reward ratio, and the eventual outcome, highlighting both winners and losers. He repeatedly stresses strict stop‑loss discipline, warns against moving stops after a breakout, and explains how a 1:2 (or higher) risk‑reward ratio can sustain profitability even during streaks of losing trades. Jordan also notes how fundamental news (e.g., Bank of Canada releases) often aligns with higher‑timeframe technical setups, allowing traders to rely on technical analysis even without deep fundamental knowledge. The review concludes with a reminder to focus on long‑term performance, an invitation to join a free Telegram channel co‑run with Vladimir for daily material, and a call to engage via comments and social sharing.
Chapters
Hello everyone, my name is Jordan and it's time for our weekly reviews. In this specific video, we're going to talk about divergence-based trades, or in other words, the Divergence University trades, starting from the bottom of course, as usual. Uh, Kiwi dollar buy trade. This is the first one. By the way guys, if you're not familiar with this performance tracking and all of that, what you have here is screenshot of the entry, screenshot of the exit, and then you have useful information in terms of the trade: the pair, the direction, entry, stop loss, etc., etc., and of course the results. In pips and percents percentage. So Kiwi dollar, let's just zoom in a bit so we can see it better. Okay, what do we have here, guys? First of all, this is a bullish idea, and after this five-leg structure to the upside. What we are getting here is a false break, a beautiful zone, beautiful level, along with bullish pressure in terms of divergences. Okay, so this is where the magic happens. This is why we are attacking this setup, which, uh, managed to provide, of course, news influence, but still The direction was correct. Dollar CAD. Actually, before we move on, let's quickly summarize the idea of divergences. First of all, what is divergence? Divergence is supposed to tell you that there is either a reversal coming or at least a pullback is due. This is what the divergence is telling us. When we're talking about regular divergences, that means we have a trend, and when a regular divergence happens, you're expecting pullback or a reversal which is against the main trend. When we're talking about hidden divergences, they do happen Um, during the pullbacks in an already developed trend, which means if you have bullish trend during the pullbacks right here or here, right, you're going to get hidden divergences and then you're looking for continuation. So hidden divergence, to summarize, is basically going with the trend. A regular divergence is against the trend. When we talk about divergences, we should be aware of good levels. That means supply and demand zones, in other words, support and resistances. And the more levels we have, the better. That means horizontal levels, Fibonacci-based levels, Fibonacci expansion retracement— that's of course inside this category— that means trendlines levels, and so on and so on. The more you find The better. Okay, now the next one, dollar CAD. This is the 1-hour chart. The idea here is very simple. We have double wave. This is ABCD move on the very top. The first attempt right here to go ahead and break with this divergence failed, and then almost immediately after that, we have another attempt And we can see the divergence remains. That means this is where we want to be looking for possible pullbacks or reversals. Without going, uh, into too much details, the risk-reward ratio makes perfect sense. We have fantastic supportive zone at that level here, and this is the target, as you can see. So on that part, we're good. Unfortunately pushed lower. Hidden divergence also created, and since we are following strict risk-reward ratio, we couldn't, uh, close the trade. It pushed higher for a stop. Okay, that was one interesting example. Then we have euro franc. Euro franc Is interesting because it comes after a V pattern. Okay, after that V pattern, we came closer to the previously created range. So testing the range, trendline and horizontal level, both of them. Hidden divergence after this pattern, ticking down strong pattern here in terms of candles, and we're after the sells. Okay, as simple as that. Unfortunately, here also we had the push up causing the loss, and afterwards you saw what happened. So When you set yourself a level and that level is broken, don't do the newbie mistake. Oh, it will be just spiking, or it's going to reverse just a few pips higher, and so on and so on. First, if you start increasing the stop loss level that you have predefined in the beginning, it means you're increasing the exposure. Second, if that was the level you set in the beginning, why do you think after breakout you're not going to go to the next supportive level or resistance level? Okay, usually when we're dealing with, uh, stop losses, what we're trying to do is I don't know, let's say we sold here for some reason. Okay, sell, and then you're going to cover that high, for example, right? Or this high, just a few pips higher. Why? Because this is the zone of resistance. This is where the price stopped previously, right? We are not going to protect— I don't know, if you're selling here, you're not going to protect here. Because that makes no sense on this specific time frame. This is the high that must be protected. There are cases in which we, we can go ahead and use aggressive stops, but this is a completely different story. Okay, those are exceptions. So if that level is broken, why do you think it will just stop here? And it will not go to that zone, right? This is the next important swing high. So stick to your stops and don't try to outsmart the market because usually you're going to pay much more money. If you're wrong, you're wrong. Cut the trade, close it, looking for the next one, okay? It's all about the long term. It's not about a single trade or 5 trades or 10 trades. All right, that was about euro franc. Um, euro Aussie was another very interesting example because here we had a very favorite setup of mine. First of all, a double wave— that's more than clear and obvious in this case. And then we have double top or false break first one. Followed by another one. The distance between the highs is small, and when we have trends, the distance is usually big. Okay, so that means lack of momentum. Of course, we have bearish divergences, and even if this is going to be just a pullback We should be fine because there is a trend line on the way. This is the next critical level to the downside, and this one here as well, which means this kind of risk-reward ratio should be good enough for us to attack, to accept the risk anyways to attack it. Okay, this one pushed higher also causing another loss and Here we had a streak of many losing trades, as you can see, in the past 2 weeks, which again is perfectly fine because when you look at the overall performance, the longer run, it's fine because you have drops, you have drops, but you're slowly and steadily going up. This is also where money management, risk-reward ratio comes in play. Okay, as you can see Any losing trade is twice more, or almost twice more in most of the cases, if there weren't any obstacles in the way where we had to close the trade earlier. But in general, using risk-reward ratio of 1:2 or so. Okay, so 2 losing trades equals 1 positive trade. Trade. Okay, uh, euro Aussie cut, franc no, pound Aussie, dollar cut. Dollar cut was also an interesting for one reason. First, we can see the second leg right here, but for this one I need to actually go to the live chart. So 4-hour chart, we are now getting a 3-leg, 5-leg structure, right? If— let me just take the actual number, and this is the 1-hour chart here. Okay, the 1-hour chart, and we're gonna transfer it to the live chart here. So we have 5-leg structure, we have beautiful zone on the top that we have just reached. We can find also a trend line starting from this high covering those highs, and we go approximately displays. So that means trendline, horizontal level, hidden divergence on daily chart. 4-hour chart already provided the first divergence between these 2, and then we have another push up. But on the 1-hour chart, this is basically what we see, right? The— it was a 3rd and 5th leg. Here we have a false break touching these two levels again with divergences. Okay, the the pressure to the upside suddenly dropped, and this is the place where we attack. Of course, Bank of Canada news influenced and helped here the price to push lower. But as it usually goes. Fundamentals tend to find a way to be combined somehow with the technicals, and at the end of the day they work together. Of course, fundamentals are pushing the prices, but an interesting phenomenon here is that on the higher time frames, technical analysis fits very well with the fundamentals. So basically you're looking at a setup in technical terms of view, and then somehow this setup is fulfilled by fundamental events. I really don't know how that happens, but it is a fact. Which means, in other words, even if you don't know how to read fundamentals or to follow them, you can apply your technical analysis on the higher time frames and you'll see how that perfectly fits most of the times with the fundamentals. All right, um, last one was EUR/USD. That one was also a 5-leg structure here which kind of worked perfectly. We were looking for buys ever since this place, and then inside leg number 4 we said we want to see one more push higher, which didn't reach per se my exact targets here, but we got the cue And again, this is— what did I do? This is how we combine the different styles of trading, which is extremely useful because suddenly from buys you're ready to switch to sells. And this is how it worked. We got the breakouts, whether it's here or here, and then we have bearish divergence. We know we are in leg number 5, and with this beautiful engulfing bar, we're looking to sell, and we do. Because now we're expecting pullbacks. Okay, so perfectly fitting cycles or Elliott waves along with support resistance levels along with divergences, and this is where these beautiful trades are born. So that would be all for these two weeks, guys. Looking forward for our next video. Of course, if you have any questions, please leave them below in the comment section. I will be happy to reply as soon as possible. Don't forget to join our free Telegram channel where me and Vladimir are posting there almost on daily basis really useful materials. I'm sure you're going to enjoy it. You can find the links below. Of course, if you like this video, share, like, and so on. Thank you guys.
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