Is Divergence A SCAM Strategy??? Here Is The TRUTH 👈

Hello traders, how are you? Vladimir here from Traders Academy Club. In this video, I want to talk about a very interesting and from my point of view important subject because this subject is very close to my heart as I've been trading this style for so many years. Are divergences reliable at all? These questions are very, very legit and legitimate, of course, because, you know, it's always something that looks great looking backwards, but in real time, can you say, can you rely on divergences? Can you rely on indicators? Can you rely on something that is purely technical? Okay, so that's the subject for this video, and that's what I would like to cover. But before I do that, if you are new to our community, to this channel, so first of all, welcome to our fantastic community. I would like to invite you to subscribe to this channel. Just please follow the subscribe button below the video and remember to enable the notification so you know when a new video is available for you. And also, I would like you to join us in Traders Academy Club and to enjoy from all our trading ideas. And our real-time education also followed up with detailed trading reports. And to present my subject for today, that's exactly what I would like to do, to go to one of the trading reports we had on recent days and discuss about it. Okay, how when everything looks great in the analysis How do you separate what looks good on analysis, what should be good in trading? Okay, so to present it, I took this trading report. As I said, one of the reports from Trader's Academy Club. That's how our members receive it. And I would like to take 2 trades from here. Okay, the euro-dollar and the Ducks, and I want to explain here. So let's take a look first of all on the bigger scale analysis. What did we have? We have a massive rally here. We have a long divergence in that place. We have a small divergence on the most recent run, right? Twenty candles right on the upper band. Corrective movement is very, very likely. So one of the techniques I love to follow is waves, and from my point of view, if I expect. That from the daily on the lower time frame. That's what I was supposed to see. Very simple. Okay, but there's a big difference between supposed to and what the market will actually create. And I want you to remember this very thing here: the way you draw the— your expectations, your predictions, your anticipation is not necessary the way that the market would follow. And in trading, it's not about predicting, it's about trading facts. Value what the market gives you. And I want you to remember this thing: if you rely on the market to bring you in a trade, you need to rely on the market to take you out of the trade. Meaning, if there is, there is a special technique you are following to enter a trade, follow this technique also to exit the trade. Okay, so the next step was basically this. Look, remember what I said, 2 waves expected on a daily, and I want to see clear wavings on the 4-hour chart. Looks how good it, it is at that stage, simply fantastic. We also had this bearish hidden divergence between these 2 highs. It looks promising. Then let's switch to continuing divergence. It looks fantastic, the slowdown this zone holds, I mean, whoa, that looks like it's going to crash, right? And here comes the thing. So here is the ABCD, here is the breakout, um, and you can attack the breakout or you can draw to lower time frames. And, uh, one of my favorite techniques, and I want to show you that, that's also the techniques I teach in Traders Academy Club, and I would like to invite you once again to join us in Traders Academy Club and to learn all these techniques how they are applied real time. And here is the thing, look, this is the 1-hour chart, okay? That's one of my favorite techniques— get the momentum. This is the ABCD breakout from the, uh, 4-hour here, okay? On the bigger scale, we gain the momentum by 3 lower highs, lower lows. We made a correction. Now look again, bearish hidden divergence, a hint for continuation, okay? And that's what I want to see. I want to see this format Breaking up, going down again. Here we go. That's a great, great, great, great sign. It failed to hold above this high and started to go lower. And here is the thing, look, that's all I managed to get. You see, small. I mean, at the beginning the expectations were like that, and maybe later on it will still follow up because if, you know, if this range breaking, we might go and get it. But at that very moment, that's the fact I have. Now look what happens. I have this ABCD blocked on a very strong zone, as you can see here, next to 120 psychological area with a bullish divergence against me. So here comes the question: Are divergences reliable at all? And I want you to remember this very thing. Okay, divergence purpose is to indicate why the whole divergence thing comes from indicators. Indicators' job is to indicate, and it's very important you understand it because, you know, many traders rely on indicators blindly. Whatever the indicators say, that's holy. So My friend, no, it's not, and you have to understand it. Okay, I mean, think about it. If you are about to cross the road, okay, and there is a green light turn red light turn into green. Is that a hundred percent safe, or you still have to make sure it's safe? Looking left, looking right. Okay, if you if there is a forecast of it's it's suppose there is a thirty percent chance. There will be rain, or 50% chance there will be snow. Is that a guarantee that there will be snow or rain? No, it's indication, it's forecasting in percentages, in chances, probabilities. Trading is the same. Trading is a business of probabilities. Okay, now wherever you draw the beginning, it doesn't matter. What does matter, that the market follows. And if the market gives you the signs against I showed you these signs because for me that's the divergences to bring me in with the waves, of course, and also to get me out. In that case, I have my concerns. I don't know what's going to happen. And yes, very good chance that this would simply hold, break, and continue lower. Good chance for that. But I can't know that in advance. I need to follow the waves. At that very moment, I have my concerns. Okay, so the divergence is not guarantee For any sort of a movement, it's indication that something might happen. Okay, and I want you to remember that because look, is that divergence? Yes, it is. Is that a guarantee we are going to see a crash? No. Is that divergence on the next one? Yes, it is. Is that divergence? Yes, it is. How big would be the move afterwards, or will that be a move at all? We cannot. Ever predict. We can anticipate, we can put the lines, we can value our risk management, but we must respect the price. Because if the market doesn't follow the, the, the lines that you draw and the plan that you have, then not the market is wrong, the analysis is wrong. And I want you to remember that. So are divergences reliable? Yes, as long as they are used properly, as they supposed to be. Indicators' job is to indicate. The price's job is to drive the market. That's it. Price is what happens real time. Buyers, sellers, real time, real market. Not lines, not analysis. Not preparation. And I want to remember that if the market says no and it gets stopped at some level and opposite signs appear against you, listen to the market. And it doesn't matter if you earned 5 pips, 50 pips, or 100 pips while you were expecting 150, for example. Doesn't matter. What matters is you, you follow the market fucked, okay? And the earlier you are able to read it, the better your chances are. That's it. Now I want to take the other example from the same report, okay, for German DAX. Now here is our analysis on DAX. We had a beautiful bearish divergence here once again, and look what happens. It has— it suffers around the swing, as you can see that, right? No real momentum around this zone here, right? We are around 14,000, which is a round number, slowing down on the divergence. It looks good, Right? So we are looking on the four-hour chart and we start to see zigzag two down, two up, ABCD, right? So I mean, okay, that looks good. Let's redraw it clearly. Break below that and break below this low should lead for the next leg. And the next leg is likely to be like this. Likely again, that's normally how waves develop. And again, I would be more than happy to see you with us in Traders Academy Club and do you. To study all these techniques I'm presenting you here. Okay, so that's it. The next step, what do we do? We follow. Okay, so we got the ABCD breakout. We got the breakout here. Little pull back as I missed the exact entry, and that's it. Entering now. What's going to happen next? Is it going to be a divergence here, or is it going to crush one way? I don't know. I can't predict it, and it's very. Important to mention that and to say that I don't know. Okay, but I do know if I will have signs against me, I need to reconsider my position. So I have divergences. So here is a management part. Okay, I rely on the market to bring me on the price, right? And my analysis to bring me in a trade. I will rely on that to take me out of the trade. So is it reliable? Look, if I don't cash, then of course looking backwards it looks like, but hey, I can make more money here, right? And let's take a look on the real chart, for example. Where is our DAX? Here, look at that, right? And we can say, so Vlad, but if you don't cash, look how much you made, right? So that's very, very good point, and of course legit point, right? But At that moment, I have no idea. Is it just a pullback or vice versa? I must have specific plan, and specific plan is to follow what the market tells. If it just crashed, fantastic, I earned big time. If not, okay, I'm going to make sure I don't keep my exposure not protected. Very, very important, okay? What will happen after? I don't know. Okay, later on when I saw this, for example, without any divergence against, right, that's where we can follow up and we can restart. Let me show you that. That's the what we follow afterwards, right? That's a place for us then. Okay, okay, now it expands, no signs against, let's go and let's continue in the bearish direction. Okay, but we don't know that in advance, and that's what I want you to remember always. I see here no divergences afterwards on the breakout, looks good, fine, sell the rallies. But at that very point, I know there is divergence, I want to protect my money. That's it, that's it. And I wanted to remember that, guys. So looking backwards, it's always easy part, always easy part. But when you trade real time, and I want you to know that, and I want you to remember that, there is no guarantee. Looking backwards, it's not like trading real time, trading forward, nothing like that. Okay, so my personal point of view, as back to the original subject of the video, uh, is it reliable? The answer is yes. But as everything, like every tool, it's reliable if you use it right. Can you imagine giving a drill to, uh, to wrong hand, or a hammer to wrong hand, okay? Or a saw to someone with both lefty hands. Imagine that. Not good, right? Wrong tool in wrong hands will bring wrong results. That's it. Same with everything technical. Is— are divergences reliable? 100% yes. I'm I'm doing that over a decade. But it has to be done from a specific level and it has to be respected and followed by the price. That's it, my friend, and I want you to know that. I also would like to ask your support back. If you find this video or other videos I do helpful, educational, that bring value to you, please hit the like button below the video. Also, I would like to ask you if there is any specific subject you want me to cover and to talk about, uh, on my future videos, please let me know in the comment section below this video, and I'll be more than happy to do that, uh, and, uh, to answer your questions. Of course, if it's on subjects that I have the answers on. Not everything I know. So that's pretty much it. Once again, I want to remember the bottom line: indicators indicate, price dictate. Okay, if you follow the the chart, right? The real movement, the real indication what you have on the chart, the real price to enter, then also respect to exit. And don't try to guess. No, don't play the guessing game. What will be, right? Looking backward, it's always easy. That's why visual backtests always look— work the best, because you don't pay attention to all the things that don't happen in real time, right? They do sort of happen in real time. I want you to remember that. And once again, I would like to invite you to join us in Traders Academy Club, learn all these techniques step by step, and see how they are used in real time. Thank you very much for watching this video. I hope you find it a help, uh, and, uh, great tips for your trading. And again, if you have any specific things that you want me to cover in my future videos, please let me know if I know to answer that, I'm more than happy to help. Thank you once again for your time, good trading, and I'll see you soon with new videos.