Between 14th and 19th November there were 3 buy trades on EURAUD on the time frame M5. All 3 trades were winning trades.
As you probably already know, in the analysis section on this website I provide free divergence analysis on H4 charts.
I also draw the divergence on EURAUD as shown in the following screenshot. I always only select a special type of regular divergences. The divergences that I select are those that occur during a matured trend. These divergences are showing possible reversals of the trend direction.
You can compare such divergences with a football that is hold under water. The football wants to pop up above the water line.
You can use the free divergence analysis to trade all 3 main systems that I teach: MagicEntry, V-Power and Double Top/Bottom
In the following screenshot, labeled with the black circles, you can see the areas where you can also search for entry opportunities with our Double Top/Bottom (M30/H1) Trading and our V-Power Trading System.
The following screenshot shows where the 3 successful MagicEntry-trades occurred in relation to the divergence on H4:
And now we will take a detailed look at the time frame M5 and see how these 3 trades on EURAUD could have been traded.
The following screenshot shows the first trade which occurred on 14th November:
The next screenshot shows trade 2 and trade 3. It's the same procedure with every trade:
After the blue and orange line started leading the price, then trade only the first pullback and the ride the subsequent move!
You can spot the trade setups with the MagicEntry-Indicator and you can receive alerts with the MagicEntry-Alerter.
Additional hint: As you can clearly see by comparing the screenshots above, the signal of the first trade was the least strong signal. At the first trade there was no strong momentum started by an impulse move. This was indicated by the fact that the blue and orange line didn't move together with the price and then started leading the price as soon as the price made the first pullback. Read more about strong momentum trades: Article1 and Article2
