How to spot multi time frame divergence setups - Divergence University - March 8th 2021

Jordan Kuzmanov reviews trade setups from March 1-5 using multi-timeframe divergence analysis across NASDAQ, forex pairs, and Bitcoin. He shows how to spot ABC corrections, hidden bullish divergences, and false breaks to find entry and exit signals, and stresses reviewing losing trades to maintain your edge.
Chapters
Hello traders, this is Jordan Kuzmanov and you're with the Divergence University review for the previous week, which was March 1st, I believe, 1st until the 5th. I'm going to start from the bottom for NASDAQ. The idea here was multi-timeframe analysis, of course, divergences on the multiple timeframes, and the entry is actually triggered right there. This is where we have divergence. This is where we should be also looking for levels, and we can see that the second trend line, the inner trend line, More or less is where the price is stopping, respecting divergence, and then we are looking for the continuation to the downside. This one unfortunately pushed up almost immediately, causing here a loss. CAD yen buys on CAD yen, and what we are looking at here is. I would personally call it an impulsive structure. Okay, this impulsive structure ended here with divergence, then created the false convergence, and then we can see the very sharp move to the downside. Since that moment on, again, we are going to be looking for possible levels of where the price might be stopping and giving us, uh, continuation in the ongoing direction, right? So that zone, this previous zone of consolidation right here, actually we can extend it a bit more to this zone here so that entire thing becomes a zone of interest. And we can see that the price is coming pretty close to this level, actually entering approximately 20-30% of the entire zone, hitting also the trend line, the bottom of the Bollingers And this is also the place where we got the bullish hidden divergence. This bullish hidden divergence is coming from a ABC, right? We have the ABC structure here, and this is where we're looking for potential continuation to the upside. Sorry, click twice. Um, this is what we got. Right, and we overall touched the previous high. Pretty classical, pretty classical if you ask me. Um, CAD/CHF, again, what I would be doing is first of all go ahead and draw levels on the chart. Okay, this is the entire thing actually, but focus on this specific level. You want to be looking at dynamic levels as well. You have inner one here which was closer to the actual price in the actual entry, and then you want to be looking at the structure which the market is providing now. In terms of structure, this is the part I wouldn't really like at that moment because, yeah, we do have Bullish hidden divergence, but this bullish hidden divergence is coming only after one wave. So in my opinion, this is a bit more aggressive, and the level that I love is right here. So if I would be buying, I would be definitely focusing on push to the downside coming closer to this zone and only then looking for potential buys if again buy was on my list and CAD/CHF was on my list. So that's pretty much about CAD/CHF. Again and again, guys, um, we cannot all be looking at the market the same exact way, right? If that was happening, there would be no market. Everyone would be selling and buying At the very same level, at the very same price. So there would be no bids, there would be no asks, there would be no market, right? This is the entire idea, and this is why we're different as traders and humans. Anyway, back to this one. It pushed, came closer to this one, so provided some profits. Bitcoin On the bullish side, the larger ABC which is formed of 2 smaller ABC patterns. The first divergence that we saw with a false break and the rejection, then we had the second divergence. All right, this time we have the MAs as well, and, um, right here, this is approximately the $40K Okay, so we have the levels, we have the zones, we have the divergences, we have the multiple false breaks, we do have the structure in terms of price action. I think overall this setup looks pretty good for short-term trading if you're looking into, uh, buys. NASDAQ, the second sell, not really interesting. EUR/NZD was interesting because the structure here is also pretty decent. We had the bullish, the bullish structure, right? This is the 1-hour chart. We also got the ABC correction. We also got here the divergence. Okay, and on this pretty strong candle, we managed to kind of go ahead and close above this spike there. So that would be the trigger. This one took some time to develop, but as we can see, This level was intact, right? We never managed to cross below that zone, and that was the importance and the the importance of this zone because we have bullish structure. We have ABC. If this is broken, then there are probably two situations. If the price remains after bullish pressure after all, right? And it will be respecting. Sorry, up to here. It will be respecting this structure, then there might be something like that happening, and we might be looking at bigger waves. Okay, but in this case, again, you don't want to be involved in that sell anymore because clearly this is not the end, right? This ABCD, ABCD is just the first wave of a larger one, or at least you're assuming it might be a larger one. You don't know if it's going to stop here or not. It might be simply continuing lower, right? Because this is the very first thing we are looking at in terms of bullish reversal when it comes to bearish trend on the higher time frames. And that's why we should always be aware of what's happening on the higher time frames. So absolutely, uh, classical and very interesting example in terms of divergences and market structures. Let's check out one or two more. The losses are usually interesting because, I mean, when you're winning and when you're making money, you feel like, I don't know, king of the jungle, right? But when you're losing, it's important to keep track of what you're doing Are you making any mistakes? Was that the right decision? Did you force anything? Was that according to your strategy, right? So going and analyzing losing trades or losing setups is very important for your confidence and overall for your performance in the longer run. Okay, so Aussie-Kiwi is the next one. We got the divergence here. The price started pushing to the upside. The sell was triggered after this initial spike. Um, I did not trade this one. I can assume that what was done here is based on this triple structure, and then somehow this was taken right here. The question now is, and you can see how I'm drawing here the level— another level of the structure. Is this a triple structure, meaning we might have another push up, or is this a double wave like this? But if we draw it like that, doesn't make much sense, to be honest, right? If we draw it like this, then it probably might have more reason. But I mean, if this is a swing low and I'm using it as a swing low to measure here waves, Then definitely I need to include this one, and that's why I would be going with a triple here, right? So if I have bearish structure followed by bullish structure, it means I might be going a bit higher. I have a very decent level right there with the spikes, and this is the previous one. So definitely the price might be pushing up. Plus, look at this spike. This is very, very interesting, guys. Okay, and we're learning how to deal with this kind of situations in the Traders Academy Club. So if you're interested on how to actually trade it, if you're going to trade it, and also manage it if you're trading it, you might be interested in checking the Traders Academy Club and some of the methods that we're using. Uh, dollar CAD, nothing that interesting. I'm also not, uh, cable, I'm not that interested in this pair, so I'm going to skip it. Cable was something that I was following very, very closely in the previous weeks, and here the situation is very obvious and clear. We had the structure here, the bearish structure We had the pullback. I think this one lost, right? Yeah. But overall, this thing developed into slightly larger ABC. And again, the levels paid just like most of the times they do. If we extend a bit these levels, we can see where the price has the potential to stop and reverse. Okay, so as we said, the first one here failed, and then later on, uh, the price managed to actually deliver another setup, which fortunate for me I was able to catch. And then we have pound CAD, which as I told you, uh, I'm not sure if it was this video or the previous video, I'm not a big fan of But still, the idea here was to see this structure. So after the initial one, we got the V pattern here coming closer to this level, some sort of consolidation. And well, I'm not sure if that could be called divergence here. This is absolutely consolidation, and consolidations inside— sorry, divergences inside consolidations are not really reliable. So again, that being said, I don't want to comment too much on this one because I would not be able to understand the trade completely and the setup completely. So that would be all for this week, guys. Make sure to like this video and comment if you have any questions. Plus, you gotta check out our Telegram channel. It's completely free, full of plenty of interesting, um, analysis and all, all kind of trading stuff in there. So click on the link below and check it out. Have a good one and bye for now.
More from Vladimir

Stop Buying USDJPY: The Critical Resistance You Need To See #forex #tradingstrategy #shorts









