Divergence I - Avoiding it
Right, three tips to make sure you are ahead of divergences and can keep account of them!
Theory
1. Always monitor DXY when executing;
When you lower down to your ETF setting make sure that you have a clear indication of what area you are using to enter on with EU and what the nearest DXY area is for that reversal as well. Because sometimes DXY will take the POI first and already reject it leaving that divergence behind on EU
2. Do not marry the idea of your trade and bias;
Stay flexible and ready to adapt. Don't get too attached to a specific pattern combination; if the price is at a point of interest (POI) for a reversal, it’s significant. If you spot a divergence, be confident enough to execute a market order to avoid missing your entry on your primary pairs.
3. Master your OTE;
Learn to draw the fibs better when catching an OTE. More on that soon don't worry but focus on candle bodies. Many times, you will realize that your live entry will occur during OTE when there is a divergence.