Divergence Trades on Nasdaq Futures

There have been divergence trades on Nasdaq futures just about all day today.   You had the option to trade using the futures contract, binary options, or spreads or combination of the three.

Divergence Trades on Nasdaq Futures

The morning began with a trend divergence that signaled price would be seeking a support area around 10:30 am.  When price found support, hidden divergence formed (higher lows in price with lower lows in the Stochastics).

Price moves up testing the 45-minute congestion dot (line of blue dots).  As price tested the resistance on the 45-minute chart, trend divergence formed indicating a bearish move to seek support was upcoming.

divergence trades on Nasdaq futures

However, price did not find support and instead broke through the ATR, flipping it from cyan to red.  Once price had cleared both the 3 and 12 minute ATRS, it again hidden divergence forms (lower highs with higher highs in Stochastics) and down she went.  This pattern replicated three times on the highs.

Short Trades off Divergence on Nasdaq Futures

A nice scalp was entered off the last one hidden divergence using the futures contract.  Profits were taken quickly as the 12 minute chart was overextended but a bounce off the ATR on the 3-minute was expected before the market turned.

Scalp off divergence on Nasdaq futures

About Gail Mercer

Gail Mercer, Founder of TradersHelpDesk, is a highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators.

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