Trading GBPUSD forex pair with divergence and pennants to identify the downmove that began last night when price reached the TradersHelpDesk Trend ATR nets nice profits.
Trading GBPUSD Forex Pair with Divergence and Pennants
The 60-minute chart shows how well the TradersHelpDesk indicators work together.
- Point A on the TradersHelpDesk Directional Volume shows that sellers were decreasing as new lows were made. This indicates a potential for the TradersHelpDesk ADX to form a magenta peak and push price back towards the ATR (plus sign)
- Point B shows the ADX does form a magenta peak so the trader should anticipate price to go up to the ATR
- Point C (on price and Stochastics) identifies that when price reaches the ATR, hidden divergence on the TradersHelpDesk Stochastic forms
- Point D shows the pennant formation prior to the hidden divergence
The trader could have used multiple binary options, they could have traded with spreads, they could have used the actual forex or futures symbol, or they could have used a combination of all of these — the choice on how to trade the setup was up to the trader. The TradersHelpDesk indicators simply identify a low risk entry point.
Trading GBPUSD forex pair, the 15-minute chart provided 3 entries beginning at the congestion dots (white dots) with the Stochastics showing trend divergence (higher highs with lower highs in Stochastics). The hidden divergence was identified on the 3rd entry and all three entries had volume divergence. Although we have a very simliar pattern now (pennant with hidden divergence on the high), both the 60-minute and 240-minute charts are oversold so trying to enter now means the trader is late to the game.
We offer several different trading packages for TradeStation, NinjaTrader and Multicharts for trading GBPUSD forex pair, as well as an upcoming 2-day seminar in Greensboro, NC. Or traders can opt to purchase the indicators individually.