See the power of divergence

See the power of divergence 300 169 Minimalist Trading – Best Trading Indicators for TradingView

See the power of divergence

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Bottoms Tops Signal in combination with the Levels and Zones, and the RSI Exhaustion.

The technical setup is very clear and simple: first of all, we have divergence between the price and the RSI Exhaustion, additionally, we have the RSI bullish exhausted and finally, we also have a confirmed top.

Trade setup – 15 Apr 2019

See the power of divergence Setup 1

The setup is clear and simple, and all our conditions are met.

The Bottoms Tops Signal and the RSI Exhaustion are confirming another downward movement and we exploit the major support indicated by the Levels and Zones to set the take profit level.

Trade update – 16 Apr 2019

See the power of divergence Setup 2

Both the price and the RSI Exhaustion are moving lower so we should expect to keep going down.

Trade update – 16 Apr 2019

See the power of divergence Setup 3

The trade is running smoothly, both the price and the RSI Exhaustion keep moving lower.

Because of this, we were able to move our stop loss to breakeven, so now we are in a risk-free trade: if the price suddenly comes back up we’ll still make money or, at least, we will not lose any money.

Trade update – 17 Apr 2019

See the power of divergence Setup 4

It looks like the downward movement has decelerated and a bottom has formed.

The bottom has not any supporting technical evidence for it being a major bottom so we can ignore it.

The fact that the downward movement has decelerated is due to the fact that we’re approaching the support level (our target) which puts upward pressure on the price action. It’s not concerning, though, because the initial technical analysis is still totally intact.

Trade closed – 18 Apr 2019

See the power of divergence Setup 5

It took some time but eventually, the price went down and reached the target.

If you are learning how to make money on foreign exchange or, at least, you want to learn an easy forex strategy, you should definitely understand the power of divergence between the price and the RSI Exhaustion like we exploited in this trading setup because, in the end, we made a 2.68x profit.