Jordan analyzes hidden divergence setups on gold, EUR/USD, and Bitcoin using 1-hour charts. He covers how to spot breakout zones, trendlines, and risk-reward ratios, plus why trade psychology and personal risk tolerance matter more than following any single setup.
Chapters
Hello traders, this is Jordan. Now let's start without wasting any more time. The first one is gold on the 1-hour chart. If you're following us from the Traders Academy Club, you probably know that we, we were looking for sells For some time now after the the most recent breakouts, and now right here at the end of the week we had this amazing push lower followed by this pullback, and this is where the divergence appeared. Hidden divergence appeared, and we started looking for the attack. Now let's go to the live chart very quickly. What was that? Goldie. And let's see where exactly do we have this setup, guys. Right here. Okay, that was the pullback, and this is where we had the hidden divergence. So what can we see in this case? Well, the very first thing that we're going to notice here is the breakout levels. And the first level that was really broken, and it was really stiff and a good supportive zone, was this one. Slightly higher, slightly lower, depending on how you want to measure it. But that was the first zone, right? And that thing was broken to the downside. We went to the next level, which should be approximately right here. Okay, and this spike and that spike, it's the entire zone, right? And basically the price managed to come back to this level after this big push and started providing the pullback. So that would be the place where we want to start looking for the sells because the first zone is now reached and we're expecting the price to continue lower. In this case, it pushed, reacted from this level, and then continuation to the upside, and now we're going to the previous levels that were never tested during this breakout. What I'm trying to say is that it doesn't matter— I mean, it all matters, of course, but the most thing that you want to pay attention to is once you're trading divergences, to have a very, very good level next to the zone that you're going to be attacking. Because even if you're wrong— this example doesn't cover it indeed, but Even if you're wrong on your direction in the long run, attacking the optimal level, the key level, most of the times will provide you with these moves. So if your risk-reward ratio is, let's say, this candle up to here, that micro move which later on turns out to be a correction of a move to the upside, right, that pullback right here Could be the place where you can still make some money, or at least give you the opportunity to push the stop loss to break even, depending on how you're managing your trades. So as we can see, this one pushed up and it actually lost money, but that would be overall the idea behind the trade. Next, we have the euro dollar, which was also on our list for I believe two or three weeks now. We got the reversals to the downside and the confirmations to the downside. And this one is actually clearer than the previous one because we can already see the levels right here on the 1-hour chart without even going to the higher time frames. So we can be applying here counts and waves analysis, right, which is something that is not part of the Divergence University, but if you know how to do it That would give you an extra confirmation. But the general thing again that you should be looking for is first of all the levels. And since this level was broken right here with this fantastic candle to the downside, we might be expecting— especially since there was no divergence on the MAs, we only have divergence on the histogram— pullbacks and continuations. What would be the optimal level in this case to be attacked? Let me see if I can make a trendline, better one. Not true. Something like that. That's the point we want to cover here, right? So this is our trendline. This is the zone that we want to see the price holding. And as we can see, the price pushed, reaching that previous High on the previous pullback and first attack. Why first attack? Because the price already ticked, right? Which means since this is my zone and that would be my optimal level right here, if the price actually creates a false break of some sort and then pushes up, I will be more than okay to go ahead and attack second time on Once the price is next to the zone, as long as it holds it. Okay, so that would be basically the idea behind euro-dollar. One more thing to be mentioned here: when you see this kind of aggressive price action in either direction—in this case, this is the downside—but you can see the price is making very, very aggressive moves lower. You want well, you don't want. You might consider. Attacking from not the optimal level, and if you're part of the TAC, you heard me talk about these optimal zones and levels all the time. And I tell you always that optimal level we can wait for that if the setup or the momentum, the trend that we're working with, is not very strong. Okay, when when the setup is somewhere around. 60, 70, 80%, you know, you're not very sure about this setup, but you still want to give it a shot, don't wait for the optimal zones. When things are so aggressive, I'm talking about the trend, and you can see it in the price action, in the candles, when the market is moving very fast with tiny pullbacks and you see such levels being broken in a matter of 1 or 2 candles like here, you can allow yourself— at least in my opinion, this is not financial advice, of course, just an opinion— we can be a bit more aggressive. Okay, this is basically the idea that I'm trying to pass on to you here. So that's about EUR/USD. Bitcoin was also one interesting opportunity for the buy side. Well, here we broke to the upside, right, after the price got pumped a bit or pushed by the latest tweets from some famous people. Regardless of that, I'm extremely bullish on this thing overall, right, not just in the shorter term. But in the short term, we can see the price creating a double wave after this breakout from the daily chart. And this is also where we can see the price creating here the bullish divergence. So if you want to be trading it a bit more conservatively, you can always be waiting for trendline breakouts, even though in this case I wouldn't call that trendline a valid trendline. You can be trading it a bit more conservatively by waiting for the price to break the most recent highs or lows, the middle point. But in this case, it looks good, and the reason is very simple. We do have a level, okay? All these micro zones that we can see, and right here we can kind of structure this entire zone, and I'll place the second one Something like that. These two major levels next to each other make a perfect place to start the attacks, to start the attacks, right? So the idea behind Bitcoin is pretty decent. By the way, we're already crossing and making new highs, so good call here. But you can see, I mean, even if we're extremely bullish when we have A set fixed plan for a given strategy, and we said we're going to trade it this way. We're doing it. Okay? If we want to be trading it more, and we have long-term bullish view, we're going to wait for the next pullback and look for the next setup. Simple as that. Some people might prefer to realize more losses or break evens on the way, but then catch one out of. 3, 4, 5, 10 trades that makes 1:15, 1:20. Okay, this also works. It all depends on what's better for you. And in this case, I believe in this subject, it's all about psychology. For me personally, having a few more trades quick in and out, quick in and out intraday is much better psychologically than Having break-even or a loss, break-even or a loss, break-even or a loss, and then catch one big one. Okay, think about that and see how you do it. Maybe that will give you some ideas. Euro pound, I'm going to skip because this trade I really don't understand. I don't want to be giving here any explanation because again, I don't get it, I don't understand it. I might even say I don't agree with it, so I'd rather stay away from that and not put words in someone else's mouth here and suggest that this is why the trade was taken when it was taken for a completely different reason. All right, so that would be all for this week, guys. Again, if you have any questions, please leave a comment below. Make sure to hit the thumbs up if you like this video. Videos. And make sure to check out our free Telegram channels— channel, singular— where a lot of valuable information on the trading subject is shared basically on daily basis. You can find the link below. Alright, so have a good one. Bye for now.
