Divergence III - Specific Order Flow

Lets start off with some advanced concepts to loosen you out a bit before everything makes sense again.

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Theory


This is going against pretty much everything that you have learnt so far. But this should start honing in your in-tunement with orderflow and the markets.


Now being here at V3, you have clearly noticed this quite a bit already. You are adapting a model, playing the easiest plays with Asia sweeps in conjunction with other HTF arrays. Matching them with deviations. But then divergence pops in. Specifically negative divergence. Which entails DXY would still be able to take a swing point higher or lower.


In this case, we have divergence with DXY and lets say the above example is EU


So there is a gap in delivery, there could be one of two things happening.


DXY will be respecting the array - and EU could just be slacking in that sense. There is shallow momentum on EURUSD.


This is purely a tool for those days where you are not sure, where it looks iÉy, and you still want to execute.


This is what it would like, side by side.

IF you see this, and its ONLY situational.


THE RULE IS SIMPLE - > Give yourself an extra 0.25% breathing room on EU.


You are playing the conviction!


Example


So this it what it would look like on the EU example;



You are anticipating DXY to create a negative divergence, because the arrays on EU are shallow, whilst on DXY they are dense, and being respected.

Project & Resources

Project & Resources

Project & Resources