Trading hidden divergence using Stochastics allows traders to take advantage of Out of the Money binary options to lower risk and increase their profit potential. Hidden divergence is a clear indication that price should move in the opposite direction of the hidden divergence. In this case, the hidden divergence was on the lows and, therefore, price should move up.
Trading Hidden Divergence Using Stochastics
In the video below Gail shows the three out of the money binary options she placed on the USDJPY after the hidden divergence was confirmed on with a reversal bar. The red dotted line highlights the higher lows in price and lower lows on the TradersHelpDesk Stochastic indicator. The red arrow on the chart highlights the reversal bar that generated the entry. Additionally, with the R1 Pivot line above price, Gail’s anticipation was that the R1 line would be hit.
Trading hidden divergence using Stochastics resulted in all three trades producing profits as price did move up as anticipated. The TradersHelpDesk Silver and Diamond Packages include all the indicators, including the new TradersHelpDesk Stochastics indicator, plus online training via video courses. The Diamond Package also includes the 2 day seminar, which will be held in Greesnboro, NC. Or, you can choose any 3 indicators with the Create Your Own package. These packages are on special this week.