How to Easily Identify Divergence Using Stochastics

Identifying divergence using Stochastics is very easy if you are using the dots on price with the dots on the Stochastics.

How to Easily Identify Divergence Using Stochastics

In this video, Gail Mercer, founder of TradersHelpDesk, shows you how to easily identify divergence by connecting the dots method. The dots are plotted on both price and Stochastics and you can connect them easily to identify divergences between price and the oscillator.

Since shorts are usually entered off the highs, the color for highs is changed to red.  Since longs are entered off the lows, the colors for lows is changed to blue.  This easily identifies the direction of the trade.  Additionally, since a line of dots will extend off the highs and lows, you can easily identify where the support and resistance are on any chart.

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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