Sentences with phrase «divergence with price action»

Using divergence with price action patterns is a great way to trade the Forex market.

Not exact matches

Given the mixed signals generated by the whipsaw price action of September 18 and 20, combined with the price divergence among the major indices, investors and traders understandably may be scratching their heads right now.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

You can use many different kinds of supporting trading signals when you trade divergence patterns, but for the purposes of this article, we'll be combining price action signals with our divergence signals to get high - probability entries.

When working with divergence the forex trader should keep in mind that the price action can be either positive or negative.

Hidden divergence typically compares price action higher lows in price with price during an uptrend.

Use these measures to locate convergence - divergence with individual price action.

For the purpose of this article, we will be using price action signals in conjunction with the different forms of MACD divergence.