"You have a great entry in my opinion. However NZD is off my list at the moment, price too high to buy and momentum too much to go against. So really happy that you have a tight s/l.
Yes if it goes down I would recommend taking quick and small…"
"Thanks Oasis, I noticed the divergence in NZD/USD on the 4H chart. NZD/USD was also over bought on multiple time frames. The GDP data was slightly below expectations. So I took a short position on NZD/USD at 1.8733 ... As of now price is…"
"Priyank, there are many considerations here, to name a few:
1) Not every divergence will play out as it should.
2) Divergence on higher time frame charts will take longer to develop and play out.
3) Correct identification of the divergence itself -…"
"Ok Thanks Daologic. So which timeframe should I consider more accurate. I drew a line joining the highs of July 2008 and May 2011. On the Daily timeframe it shows it passes through 1.4050 - 1.4070 while on the Monthly charts it shows it passing…"
"With regards to EMA I use 20, 50, 100 and 200 ... I understand why levels would be different in different timeframes when it comes to EMA. But when drawing a extending line connecting two previous highs or two previous lows (Shown in both charts by…"