MASTERING DIVERGENCE PDF- Simple Trading Strategy

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A definite plan about where to enter, where to place Stop Loss and where to exit is needed. Divergence patterns can lead to consolidation, correction, or full trend reversal. With a solid strategy, you can make a quick profit on the small correction, or minor trend reversal.

 When the trend reverses, you should stay with the trend for as long as possible. You should also be able to filter small divergence patterns in a sideways or “choppy” market. When the price is moving up and down in the range, the MACD is moving around the zero line, giving too many invalid signals. 

The Golden Rule explained in the Divergence Master Trader book protects us from such situations and limits the entry points only to significant divergence patterns. All features built in the Divergence Pattern Recognizer helps the trader to find reliable divergence patterns automatically.