Divergence II - Live Examples

Alright, when we drop to the smaller execution timeframe, starting with the 15-minute chart, we want to see some kind of break in correlation.

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Theory


Here we see a clear crack in correlation, notice how DXY formed a higher high, breaking structure, whilst EURUSD formed a higher low, instead of a lower low.

This is what we want to see before we move into a good POI. Price printed an adverse signal; this is a good sign. Because this indicates that price is ready for a reversal.

You must understand that divergences are in your favor when you are looking for some sort of catalyst.

Project & Resources

Project & Resources

Project & Resources