The Best Way to Use Divergency

26 Aug 2010 by SSR, No Comments »

When you’re basing your trading around a day trading chart and making short term trades for quick profits, it is vital to have the best info. This implies backing up your system with cross checks against other signals. One of those patterns is divergency.

Divergence isn’t in itself something that a trader would base a system around. It is more of a secondary signal that attests or counters the signals that you already have. If it doesn’t, you can hold back and likely protect yourself from a loss-making trade. I don’t need to tell you how this can add to your profits on the base line.

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