Hidden Divergence - Free CLASSIC Trading Strategy 👈

Hello traders, how are you? Vladimir here from Traders Academy Club. In this video, I want to talk about a very classic, simple, yet super effective way to trade the hidden divergence in trend riding market conditions. In other simple words, how on a classic way, very simple yet very efficient, to ride the trend based on a hidden divergence technique. Before I dig deeper and explain all the details, if you watch this channel for the first time, let me first of all welcome you to our great community, and I would like to invite you to subscribe to the channel. Please follow the subscribe button right below this video And please remember to enable the notification. And also, I would like to invite you to join us in Traders Academy Club, our trading club, our trading family, where you will enjoy from real-time trading education, live market trading sessions, and the detailed trading report, which I'll show in a second. Okay, so the links to that could be found below this video in the description or in the pinned comment. In the comment section. Okay, and now to present this technique, I would like to go to the trading report, the direct trading report that our members in Traders Academy Club receive, as you can see here. And what I want to show here— okay, let's scroll down— and here, so this is our watchlist we were following in that particular specific trading week and trading day. And I want to take the dollar-yen as an example and explain here the technique I am about to present, why and how it's done properly. So let's take a look on the dollar-yen. Okay. The way we analyze the market in Traders Academy Club in our live sessions. And I want to explain why are we after buys here. So in our analysis, we spotted that we are in between weekly significant high-low that makes us to be inside a more, uh, narrow range. Well, narrow, that's maybe the wrong word here, but, uh, inside a specific, uh, range of prices based on the higher time frame. And we saw this movement to the downside ending with a massive bullish divergence on the MACD, both moving average and the histogram also The RSI. The classical place from here is that this ongoing trend line was broken and we start to recreate higher highs after, after what? False breakout to the bottom. So we switch the trend going to the upside and look what happens at that area. MACD also from a long negative sentiment. You see what happens in the moving averages? They are below the zero line, right? These zero lines. Now for the first time we go in the positive zone. So with the price, the indicators come into play. It's very important to remember we do not rely on indicators blindly and say, well, if I have an indicator say, right? No, never do that. Indicators, they not dictate, they indicate. Okay, and when the price and the indicators are synchronized, that's where your chances are high. Besides that, if the price and the indicators show different things, the indicators have no value. Remember that, very, very important, because most traders believe, uh, the indicators in a, you know, blindly without understanding what's happening in the price. What are the highs? What are the lows? What is the momentum? Where are the buyers? Where are the real sellers? Very important thing to remember. So after spotting that, and also I want to show you here on the weekly chart, look what happens at that very time. What after the massive drop down here, right? Boom, boom, boom. Lower highs, lower lows. Look what happens. MACD turns around, and it started even earlier, right? On the whole bearish channel here, right? Look what happens. The lows are now aiming to the upside. So and of course here on the last part, and for the first time, look what happens here. MACD also crosses. Bullish. So we got a trend broken, we got MACD switching to the upside, we got the higher highs, higher lows on the weekly and the daily chart. Fantastic. So what's next for us? The next step is we go to the 4-hour chart and we are looking for trades. So let's discuss about the hidden divergence trading, what and how it's done. But before, uh, before that I would like to ask your help. If you find this video helpful, educational, useful, first of all, feel free to share with anybody you want. This is completely open for the community. I hope it helps. And also, please hit the like button below this video, leave some feedback in the comment section. YouTube algorithm requires all these little, uh, things, so your help would be very, very much appreciated. Thank you very much, uh, in advance, uh, for helping with that. And also, of course, as always, if you have a specific subject you want me to talk about in my future videos, let me know. Drop it on the comment section below. Tell me what you want me to talk about. If I know and I can help with something, I'll be more than happy to go and do that, cover this subject in my next future videos. If there's something I don't know to talk about, then of course I, I will not be able to help. So let's talk about the technique. The hidden divergence, first of all, how it is recognized, the inverted divergence. The idea here is we take an uptrend, we take the higher lows. Okay, so first low, second low, and we are looking for the same thing on the MACD. And here they are inverted. So higher lows on the chart, lower lows on the indicator. I'm using the histogram of the MACD here. Okay, what does it mean? That means that the sellers are trying hardly, they are creating a lot of volume inside, and yet, yet they do not manage to go and create bearish market making lower lows. Okay, so this— in that, in that situation, I understand what— so I have a bullish hidden divergence. So okay, indication, great. What's next? Let's see if the price fits. So looking at the price, what do I get? Trending structure. There is a bullish momentum, higher highs, higher lows, and we gain momentum. We don't lose momentum like that, right? We gain. It's getting faster to the upside. It gains momentum here. The buyers are real. So what do I understand? There is a good chance for what? For buy opportunities. Can I have any sort of guarantee that if I buy here, I will make money? Of course not. Okay, and don't believe anybody who can guarantee you success rate of specific strategy in every market conditions. It does not exist, remember that. So we have an understanding that, okay, multi-timeframe analysis gives me a buy opportunity weekly, daily, 4-hour, all synchronized. What's next? The next thing is have a clear plan of invalidation. For what? To do that what I, I call a cut early, okay, to do a management, risk exposure management If things don't develop the way you want, because most traders, what they do? They jump in and they say it will be fine. And when they wake up, like oh my God, what did I do? Right? And then they start to panic and ask questions all around, like Vlad, what to do? Or whoever other person they follow, what to do? The first thing to do is to plan. Plan your trade properly from. A to Z. What happens if the market follows? What happens if the market doesn't follow? Don't jump in the trade just because some indicator told you buy. No. So, uh, in that case, my invalidation plan was that because according to higher time frame swings, that's the higher highs, higher lows. So, so for me personally, in that situation, as long as this, uh, ongoing trend line holds, for me this is the invalidation plan. So how do I know the hidden divergence time is coming? When it ticks, the MACD ticks to the upside. Now there are several approaches here, and the classical way of trading hidden divergence is once it ticks, you attack. Okay, so let me try to draw better. Once it ticks to the upside, okay, that's the attack, and you put a stop loss in that case below the trend line, or you protect the previous lows on the chart. Okay, but That's the first classical way. I personally love to go and to verify that on the lower time frame. So in that case, let's take a look on the lower time frame. Okay, and what do we have here? We are right here. I want to do what? I want to make sure that at the end of the correction, we are switching to what? To the upside. How? First of all, by having a bullish divergence. You can see it here. Okay, histogram, moving averages. RSI bullish divergence in play. Then the next thing, first of all, higher highs. If you want to be more conservative, then you wait for the next highs to form, right? If you are more aggressive, then with the 4-hour chart ticking to the upside and the 1-hour chart starts to line up, you attack. Okay, that's it. Now management. Very, very important. So remember, we discussed about it. As long as the invalidation plan did not invalidate, basically you are valid. As long as the market trend did not change. Imagine the market does that now, okay? Making 3 lower highs, lower lows, pullback, and breaking down. That's not a bullish sign, right? So if the market does that once you are in a trade, don't stay in. Cut. If it doesn't develop Cut. Very, very important thing. Despite the strategy would tell you buy, stay, um, dynamic with the market. Follow the facts. Follow real facts. Okay, you are after the buyers. Multi-timeframe analysis. What do you want to see? You want to see buyers. How do you know buyers are in the game? When they manage to create higher highs, higher lows. That's how buyers show their power. Okay, happens beautiful. You know you're in the right direction. If it didn't happen, they start but they fail, and then lower highs, lower lows, falls. Get out before the stop loss cut. The earlier you recognize you are in the wrong position, the more money you would save, the better your chances would be to have very successful performance. Okay, so the classical way of trading is with hidden divergence. Recognize a synchronization In my case, I use divergences with levels. Bullish divergence from the weekly MACD crosses to the upside. Bullish divergence on the daily and higher highs, higher lows in place. Sorry, just draw it. Higher highs, no, higher highs, higher lows already in play. No signs against me here. As you can see, MACD just climbs higher, RSI climbs higher, nothing against. Okay, and we are in the positive zone. So weekly Crosses upside, daily positive price, higher highs, higher lows form. Going to the 4-hour hidden divergence, I can't guarantee it's gonna be a winner, but I know my chances are very, very, very high. That's my attack. This, when it ticks to the upside with the verification on the lower time frame, as I saw, this is the buy. That's it. Okay, so what to do if you miss? This buy, and you wake up and you are here. Okay? Should you still look for buys? The answer is as long as there are no signs against you, and the risk reward is on your favor based on the analysis you did. The answer is yes. So you miss few pips. So what? So what? Imagine you want to buy a purchase high, and the price is seven hundred thousand dollars. Just for example. Okay? And you say, oh, I want to buy, but I need to arrange the money. By tomorrow, the price is seven hundred ten. Is it still a good buy or not for you? Okay, that's it. As long as it's in your favor for your conditions, risk-reward is in your favor, the answer is yes, you can buy. So the classical way to trade hidden divergence is first of all multi-timeframe analysis synchronized in the same direction and wait for the pullbacks. Make sure there are no signs against on the higher timeframe, as you saw daily with us. And lower time frame, they revise your, your direction. And one tip which I want to give you here, you know I love to give some little tricks, is when you identify the trending structures, look at the most recent lows close to your pullbacks. In that case, we have a low here, a low here. Look what happens on this area. You see what happens? It's called a false breakout. The market tries to go below, but immediately goes up above. Okay, with the bullish hidden divergence sticking, with the higher time frame synchronized in the same direction. Now again, we don't know if it's for sure going to go up. Now I showed it. Of course, it's easier to show that, right? But at the moment, I prepare my trade here. At the moment, I'm looking for my setup with the hidden divergence in play. Right? I don't know, is it guaranteed or not? Now, of course, it's easy to show that, right? But that's why I wanted to show you directly how it comes from the report, directly how it comes from plan, the point number 1 of your trading plan. Okay, that's it. So I hope, uh, I hope this helps basically. And, uh, again, if you find it useful, please hit the like button, drop some feedback below in the comment section. And let me know what other subjects you want me to cover in the next videos. So that's all. Thank you very much for your time watching this video. Once again, I would like to invite you to Traders Academy Club. Learn all our trading techniques, discover all these things, how they are done real time, okay, in the real market. And I hope to see you with us. The links to join us below this video in the description or in the pinned comment in the comment section. Okay, thank you very much, uh, for your time watching this video, and I'll see you soon with more great content.