FOREX STRATEGIES THAT WORK - Part.2 - How To Trade Hidden Divergence

Hello traders, how are you? Vladimir here from Traders Academy Club, and in this video, actually in this series of videos, 3 videos, I decided to share with you great, useful, mainly free trading strategies. So either if you are a complete beginner in trading world, or if you have some experience, these strategies could be beneficial for you. And the great part of it is that they could be combined with any other thing that you already use and you know. So this video is the very first video of the series, 2 more to come. So let's begin. Right before I jump on the charts and explain the strategy, I would like to welcome you to our fantastic community. If you are watching this channel for the first time, I would like to invite you to subscribe to the channel. Please follow the subscribe button below the video and remember, enable the notifications so you know when I have new content available for you, trading ideas or educational content. And also, I would like to invite you to join our trading family, the Traders Academy Club, where you will enjoy from our real-time trading education and real-time trading ideas that are delivered to you as a video and as trading report real time. This is, as you can see, our channel where we are sharing all the trading ideas and education real time. To present my trading strategy, I also would like to encourage you to download a completely free ebook. This is my blog vladimirribakov.com. Okay, so what you have to do is just go to Forex Education and in Free Ebooks this is where you would be. Okay, so the strategy that I want to present in this video, and of course you can read a bit more about it, you can find here, would be the hidden divergence strategy. Okay, so feel free to go and download it and enjoy from it. Now, to present the strategy, I will take a real trade idea that we discussed in Traders Academy Club. So to do so, this is our trading report. This is where I share all my trading ideas and of course the updates, and all happens in real time for you. So I will take the Australian-Canadian bullish idea that I shared with my followers, and I would like to explain what happened behind. So I did my analysis, which I will explain in a second. But what I want to talk about would be the trading strategy based on the hidden divergence. So it's very simple steps. And the first thing here that I will explain the analysis behind it, but just want to explain it. I want from my analysis here, my idea was to ride with the buys. So I wanted to see a pullback and after the pullback join the current ongoing buys. That was the very initial plan. And then as the price pulls back, I want to see a bullish hidden divergence, which again I will explain about in a second. Once it forms, I know I have a great trading opportunity to hop on the trend and ride with it. But now let me quickly explain what stands behind the strategy. So hidden divergence or inverted divergence, it's a divergence that we work always to ride a trend. The first step that you have to do is identify the trend. It could be on the very same time frame that you have the hidden divergence on, or one lower time frame if you just compare this whole wave. Okay, but there has to be trending condition. What is a trending condition? When the market manages to create higher highs, higher lows In the same direction. If it's uptrend to the upside, if it's downtrend to the downside. Make sense? Yeah. The next thing you will want to do is to wait for the pullback. This is your step two. Once the pullback happens, you would want to go and to compare the indicator. Remember, indicator is as it sounds: indication. Something happens. You would go. We need to go and. Verify with the price, of course, which I'll explain in a second. So what you want to see for an uptrend is higher lows on the chart, lower lows on the indicator. I use MACD histogram for that, as you would see in the example, or as you can read in the free ebook as I showed you at the beginning. So once we found this condition, let's try to understand why is that important sign. Now, if it's a bullish trend as we identified before, that means what? That the buyers are likely in control. Okay, before the buyers took the control, the sellers were pushing the price here and they managed to create some low. Let's call that L1. After that, the buyers took the control and then the sellers tried to create a pullback and they were pushing hard Making the indicator create completely new low, lower than the first one, which means the push happened with some sort of, in simple language, like sort of more money involved, more efforts to create the low. But despite that, they managed to bring bigger volumes to the market, causing the indicator indicating that there is a new low there. Despite of all that, the lows on the chart are still going up, which is a sign that, okay, maybe the sellers are not that powerful. So the next step for us would be actually to go and— it's the final 2 steps for us. I think my camera was off before. Now it's on. Anyway, hello, I'm Vladimir from Traders Academy Club. So the last 2 steps we have to do is basically— and that's where I want you to understand the thing here, the whole thing, the whole concept here. We identify the trending structures. We saw the indication that the sellers are weak. So we need to verify on the lower time frame that the correction is over and that on the higher time frame we have no signs against us. So what we have to do next step is to go to lower time frame and to make sure— let me just erase it quickly here. So if that's where we had our hidden divergence right here, we need on the lower time frame, and I'll draw it with different color. We need to make sure that this correction ends with a basic divergence, which means lower lows on the chart but higher lows on the indicator, which you'll see in a second. And on the higher time frame, we need to make sure there are no obstacles, barriers, uh, in our bullish, um, trending idea. Why? Because if we want to ride with the trend then we need to make sure there is a trend and there are no obstacles like key resistances, or the way I love to use that, opposite divergences against. So I go back to this example, okay? As, as I explained, the analysis behind it was bullish, and I'll show you in a second why. And I wanted to see pullback and a setup. So in that case— and by the way, that's One of the strategies that I teach in Traders Academy Club. If you want to take it many steps further, I really invite you to join our trading family and to learn all these techniques. If it's with the hidden divergence to ride the trends, or if it's with convergences to join on a reversal, or in a better risk-reward opportunity to ride the trend, then I invite you to join our Traders Academy Club. You will learn all these techniques how they happen in real time with the real-time trading ideas, as I showed you, um, a few minutes ago in our report. So here is what happened here. Okay, so we got a trending structure here, which also could be identified on the lower time frame, and we got here a hidden divergence between these lows or even these lows. Okay, how do I know? Because we have higher lows on the chart versus Lower lows on the indicator. So despite the attempt to push a lot of sells here, the sellers are not so strong. So in that case, I want to identify, verify that there are no signs against me, right, on the higher time frame. Because if— okay, so if I understand there is a potential to ride with this bullish trend, let's try to hop on and Right? So the first thing I need to understand, there are no signs against me. I go to higher time frame. So if I was working on a four hour, I go to the daily. What do I see? I want to make sure there is no divergence against me. It was right here in that case, and I'm asking myself, what is my last divergence? My last divergence here is bullish. So not just it's not against me; it's actually with the daily last divergence. Last. Pressure, which is bullish in that case. The last step to do is let me just put the vertical line here. Okay, so this is the place and this is where the hidden divergence confirmed. And that's where I want to go to the one-hour chart and look for verification of the ending sign of this correction. So what I want to see is that at the end of this move, right? There will be a bullish divergence. In that case, we have a bullish divergence here holding bottom and higher lows on the chart. Classical sign. And I got all the 3 steps I need for the hidden divergence. 1, trending structure. 2, nothing against me on the higher time frame. 3, verification on the lower time frame. And I can join. And from this moment, You can join with instantly with candle patterns. There is nothing wrong with candle patterns. And in that case, there was a fantastic opportunity here with this massive engulfing. As you can see, a hidden divergence by itself right on the clearance zone. But that's different strategy, so I don't want to confuse you. Uh, and, uh, you can of course attack this ABCD breakout, or simply wait until the higher highs flip again and start to point upside, which would be sort of indication that the buyers are likely back in the market. Doing these 3 steps allow you basically to try to ride with the trend in high odds. Remember, in trading it's all about odds, all about probabilities, and we increase our probabilities here We improve the probabilities here, and on the same time, we are basically getting in a great timing because all the 3 time frames become synchronized, become lined up, and that's where our chances are completely increased. Okay, so this was an example for a bullish hidden divergence on Aussie CAD. And once again, I would like to invite you to go and download your ebook. Okay, it's right here for you, right here. As I said, yep, uh, so it's just in the blog, Forex Education, Free Books, and this is the ebook, The Hidden Divergence. Okay, so I hope you will find it useful, um, helpful, educational. And as I asked before, if you really want to take it to many steps further in terms of realization how these things happen real time on all the instruments, doesn't matter if it's forex or indices or commodities, I really invite you to join our trading family, Traders Academy Club, and enjoy from all these opportunities and all these techniques. And, um, that's pretty much it. I hope you enjoyed it. If you did, please show your support back, hit this like button, leave some feedback below in the comment section. Your help is very much important for this channel, and thank you very much in advance. And I'll see you soon enough with the other videos in this series, which I hope you will love. So thank you for your time. I wish you a wonderful trading And all the best. Bye for now.