I told you many times that I am a big fan of Divergence.
So far, I have introduced you many example of Bearish Divergence.
It is my great pleasure to introduce Bullish Divergence.
Only the issue is … this is on the Daily chart. Â So the price may go up today, tomorrow or even next week.
Nonetheless, let’s build up the Long setup.
On H4 chart, the Stochastic “up” cycle has already started. Â The price has once bounced up from Fib 50%, but came back to 50% level again.
Looking at the Hourly chart, the price is forming “Triple Buttom”, and Stochastic down cycle is “almost” over. Â Please note that if in fact, the price goes up from here, that is to say “from DS1”. Â Pivot theory predicts the target should be DR1, which happens to be WPP as well.
Well, let’s talk about the entry.
On M15 chart, Stochastic down cycle has just started. Â We should at least wait until this down cycle is over.
And when it is over, check the price. Â If the price won’t be lower than the support (183.93), then I would like to buy this pair.
I also found Bullish Divergence on M15 Stochastic!!
Stop should be below 183.90, and the target should be DR1 (185.30).
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo
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Thank you very much for that analysis