You need to remember one thing that divergence is an indicator and you cannot use it for entering the market of forex. If you are a smart trader then you would not be dependent on divergence only you would use different signal that would help you to make the profit that you want to make. If you combine the divergence with different tools of trading then you can lower down your risk and earn the fruits that you are in need of. You can also lower down your risk.
Sometimes divergence can become dangerous indicator for the trade. If you are not sure about the trade direction then you should not invest in that direction. Divergence appears very rarely if they appear then you would be able to notice them. Regular divergence can help you to get proper direction about the trade. They would provide you right information at right time. Hidden divergence and lead your trade in waiting period. To gain the desired results you will have to wait for long time. It would not give you proper guidelines about the market trend.
You should know the tricks to choose the divergence for your trade. You need to think twice about the direction that is showed by the divergence. You need to plan about your set up and then enter the direction that is showed by divergence. Thus divergence is the indicator that can be used for making huge profit and gaining information about the market.
Important Rules for Trading Divergences.
Monday, September 14, 2009
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its nice and useful
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