FOREX THEORY
9 Rules for Trading Divergences
1. Make sure your glasses are clean
In order for divergence to exist, price must have either
formed one of the following:
-Higher high than the previous high
-Lower low than the previous low
-Double top
-Double bottom
Don’t even bother looking at an indicator unless ONE of
these four price scenarios have occurred. If not, you ain’t trading a
divergence, buddy. You’re just imagining things. Immediately go see your
optometrist and get some new glasses.
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