A trader walks through four recent setups using price levels and divergence signals. He covers KiwiCat and AUD/JPY shorts based on hidden divergence and trend-line breaks, a Kiwi double-top, and a EUR/NZD long that failed. The key lesson: maintain good risk-reward even when win rates drop below 50%.
Chapters
Previous week started from the 25th, so basically anything above KiwiCat is, um, from previous week, right? So let's go ahead and quickly cover these trades. KiwiCat sell idea, let's just zoom in a bit. This sell idea, guys, this is first of all the 1-hour chart. And here we can, um, we can split this count to the upside multiple ways, right? But overall, the idea here is very simple. It doesn't matter the way you're going to count it. We have a level, and it all starts from this very specific level, right? We have a bit more to the upside. We can split them into multiple levels, but this is overall where we want to see the price reaching first of all when it's going up. Then once this level is reached, we start looking for reversal signs. The first reversal sign in this case in terms of the sells would be the first false break. Next we have another false break which is following right here with the opening, and then we start following the MAs, we start following the histogram, and basically we can see that the price is starting to suggest we might be looking at possible pullback or a reversal. And this would be the zone that we're going to be aiming. Okay, so this one failed. As we can see, it pushed up within a few bars, but basically that would be the logic behind QECAD. Next one on the list is AUDJPY, and for AUDJPY, once again, we do have the 1-hour chart right here. We are looking for the sells, and the sells would be based on that. Basically, we're looking at this short-term Um, pullback based of course on the higher time frames, which are most of the times covered either in the Telegram group for the EU, but also if you're part of the Traders Academy Club, you can see the analysis live during the live sessions. So without going too deep into this one, the idea is that we are looking for another push to the downside as long as this structure doesn't complete itself, which means based on divergences We do have here hidden divergence. There is also a trend line on the way. There is also these two lows that the price broke, and now basically the price is starting to push to the downside, right? So this what would be expected to be well, even if you don't expect it to be a pullback, that would be a short-term trend, right? We're creating higher highs. The moment we broke right here. We start to get lower lows, lower highs. We get the pullback. We have the hidden divergence, and this is the place where anticipation is for the price to push lower. Next, Kiwi dollar. Now this one also for the sells. The idea here is that we have the first wave. Second wave, doesn't matter how you're going to count it. We got the divergences here, okay? And after the false break, we can see the price is pretty much respecting this level based on the previous two highs, this double top that we saw there. And now we're back to this level. So again, the expectation would be for the market to create something like this and. Provide this deeper pullback. Then we have EUR/NZD, and here we had multiple divergences from the higher time frames also. This is the 4-hour chart. I'm referring to the daily chart as well, which was under bullish pressure. And, um, EUR/NZD actually started providing this bullish signs a bit earlier, since the beginning of January, we started looking at false breaks, we started looking at divergences, and at that stage right here, we attacked the buys. Unfortunately, as we can see, the price quickly pushed lower. But if that would be a gaining, we're usually working with a risk-reward ratio that allows This divergence tries to be basically to our win ratio could be lower, but lower than 50%, right? But at the end of the day, we can still make money because the risk reward ratio is in our favor. So that's all about the divergence. If you like this video, guys, thumbs up. If you're trading any of the other strategies that we're using in the club, you. You can check out the other videos. That would be all. I'm wishing you a fantastic week ahead, and I'll see you next week. Bye for now.
