Do you Know everything about Divergences?
Strategy:


1. Use 1h, 4h or higher any currency pair timeframe.
2. Do orders in the tops or in the bottoms, not in the middle of the price!
3. Look for available profit - is it worth for doing trade?
4. Think about stoploss - is it not too big.
5. Be higher timeframe trend follower - chance to win are bigger ant tp - much bigger!
6. If you are not shure, never do trade! Forex is waiting, not doing a lot of orders. Here is not a place for your emotions. My account started to grow when I started to wait for only the best patterns.
7. Allow market to show, when you must trade!
Indicators
1. MACD with fast EMA12, slow EMA26 and signal EMA 9
2. Stochastic ossciliator with settings: %K period 5, %D period - 3, slowing - 5
3. Candles
The entry.
1. Identify divergence.
2. For entry use a drawn trendline (when the candle closes lower or higher trendline), nice candle (pinbar, evening star or etc.) or candles setup (tower, three river confluence or etc.), stochastic or MACD crossover.
Stoploss
1. Stoploss must be set over the highest point or if you know candles very good, you can use stoploss over or below only one candle (I often do like that).
2. Never change stoploss !!! You can change stoploss only to the trade direction.
3. Stoploss must not exceed 3% of your account.
Take profit can be:
1. support or resistance;
2. different color candle or group of candles;
3. stochastic or MACD crossover
Divergence types.
Divergence is, when market price disagrees indicators action. There are three types of divergence: regular, hidden and exaggerated.
Regular divergence is the best known type of divergence. It is trend reversal divergence. We must view to the peaks of price and indicators. The regular divergence is, when price makes high, higher high, but indicator shows high after that lower high for short signal. For buy signal price makes low and after that lower low, but indicator shows low and higher low.
Hidden divergence is a trend following divergence. Like a regular divergence it can show for sell or buy signal. Hidden divergence accours, when the price makes high, after that lower high but indicator shows high and higher high for short signal. For buy signal price makes low and higher low, but indicator shows low and lower low.
Exaggerated divergence is similar to regular divergence. The difference from regular is, that price makes two tops or two bottoms. The first top or bottom on price is similar to second top or bottom, but indicator shows these tops very different first to second. Exagerated divergence very often is a counter trend divergence, but it also can be a trend following divergence. For example when market is a bull market, price can do low, similar low, but indicator shows low and much higher low.
All types of divergence are shown in picture 1.

Example, how to find divergences on a real chart, shown in picture 2

P.S. Don't try to earn to much money. Always try new things with demo account. It is not easy to start only profitally trading. Do not use TV and do not listen what other says. Forex is only for that, that at the one moment are people who shorts and are people who longs. The chart must show to you, where it goes. Try to see it yourself. Remember, that there are not trading systems without loses. Keep yourself in discipline and make a lot of good trades. I hope I helped you to win.

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