2016-03-21_20-07-58usdsgd

Hello Traders,

We have to read the charts with the information they provide and act upon it.

If you are a trend-follower then you might wait for a retracement on this chart and think like a bear and go short from resistance.

Analyzing all the us pairs I noted that price is on most us pairs at he level of support.

I am looking for factors of confluence for a trade decision or bias.

Then I noted a bullish divergence on the stochastic and a piercing candle which is the first green candle to the right of the chart right at the bottom.

It tells me that bullish pressure overcame bearish pressure and that there might be a possibility of shift in the sentiment of price.

Therefore for aggressive traders a long trade is suggested based on the level of support and the divergence of the stochastic indicator.

It is aggressive because it is a counter trend trade but if it turns out to be a trend reversal then it might be very profitable.

BEST OF PIPS

One thought on “Divergence on the USDSGD Daily Chart”

  1. Tyler Lund says:

    Thanks Nuno. Very nice work.

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