i'm trying to get you into profit as
quickly as possible and the best way to
do that
again is trading with the trend and as
most of you guys
know a majority of my trade entrances
are because of divergences now in this
video i'm going to explain
hidden divergences as best as i possibly
can
because those are trend continuation
[Music]
divergences welcome back to the channel
everybody my name's artie and this
is the moving average a show where we
discuss everything day trading to keep
you profitable on a consistent basis
continuing along with the theme you guys
remember the video that i made on
thursday it was the five-minute scalping
strategy
and only trading with the trend this
video is going to be in addition to that
video so if you haven't seen it already
please go watch it after this one
but essentially i want you guys to
continue trading with the trend and the
best way to do that the best way to
actually get the
extra boost of confidence not only your
previous confluences to enter your trade
but looking for hidden bullish and
bearish divergences
i'm going to jump into the charts and
i'm gonna show you exactly how to find
those
all right so we're gonna be looking at
two different pairs two of my favorite
assets to trade i have australian dollar
us dollar as well as us 30. i've already
drawn up my support and resistance
levels on a one-hour time frame you guys
should constantly be doing this
every single time you jump on the charts
and all it is is drawing horizontal
lines across the peaks
and the lows you usually want two above
and two below the current price now let
me explain
quickly what a hidden divergence is if
you
think about standard bullish price
action and standard bullish structure
you're looking at
higher highs and higher lows now that is
going to be
your price action this is what the price
is doing
then you have to look at your oscillator
whether it is a stochastic rsi or a
standard rsi
some type of oscillator i like to use
the rsi and i'm going to show you that
here in just a moment
but with a hidden bullish divergence
because we're looking at bullish price
action
we should be looking for hidden bullish
divergences
now what your oscillator is going to
look like with a hidden bullish
divergence
is something like this so your price
action is making
higher highs and higher lows with a
hidden divergence your
oscillator is going to look something
like this it's going to create a high
a low a higher high and this
low is going to be lower than the
previous one you can clearly see that
this low and this low good structure
but on the rsi you had a low and a lower
low
this is important because at this point
the market was
oversold and went up and at this point
the market was more oversold
and went up this is going to be your
hidden
divergence and you can put trend lines
up to see it
clearly when you get something like that
this right here is a
great entry point especially if price
action is on a trend line now for hidden
bearish divergences
it's the exact opposite so literally
just flip it okay so because we've
already done an example of a hidden
bullish divergence let's look for one on
the price
we're going to be looking at this
section right here you can clearly see
we are in an uptrend
we have our low our higher low our
higher low
higher low higher low now let's toss up
the moving average rsi on here
it's called the tma divergence indicator
it's basically an
rsi without the overbought and oversold
areas
so i've got a few of the settings turned
off just so i can show you what the rsi
looks like it is a solid yellow line
showing momentum because the rsi is a
momentum indicator it shows you which
direction the price is going you can see
if the rsi
is going up we have bullish momentum
above the 50 line
that means it's going to continue up
going down below the 50 line that means
it's going to continue down but the cool
thing about the rsi divergence indicator
is
you can actually plot bullish and
bearish divergences the normal ones
as well as hidden bullish and hidden
bearish divergences
so because we're only looking for
bullish hidden divergences
we're going to tick that and see what
happens and just like that we're getting
higher lows
on the rsi and then we get that big dip
down creating a more oversold market and
then the price starts going up
right there you get your hidden bullish
divergence and because you've already
marked up your structure
after that candle closed right there you
could have
entered in your trade with your first
take profit
at that previous level of support and
resistance and your second take profit
at the next one keeping your stop loss
below the bottom of that candle
you're looking at a one to three risk to
reward ratio right here with a total
profit of 46 pips
on this one move so not only taking into
consideration
all of the things that i taught you in
the previous video on how to trade with
the trend
off of trend lines using all of the
tools that you have at your disposal
you can also set specific parameters for
which divergences you're looking for
right here now because we are going on a
long position
and we're targeting two previous support
and resistance levels
you want to look for reasons to get out
of the trade at that point
not only is it your take profit if
you're holding trades long term with a
trailing stop loss
this next tip is going to help you get
out of your trade before it starts
coming back down
so when looking at divergences there are
regular divergences
if the price is creating higher highs
consistently
and then the rsi is going to start
creating lower highs
that is a regular divergence so what you
can do is go into the settings
and only look for bearish divergences
because that's going to be your
exit point for your trade and right here
we got a
higher high in the price and yet we got
a lower high on the rsi giving us our
first bearish divergence
which means that this would have been a
good exit point for your trade
because it is not only a previous level
of support and resistance but because
you got that bearish divergence
this is how i want you guys to be
trading trading with the trend
looking for hidden divergences trend
continuation divergences
targeting previous levels of support and
resistance
these should be your zones because these
zones are magnets
for the price and if you guys want to
see how i trade
day in and day out whether the price is
going up whether the price is going down
if i'm trading with the trend or if i'm
counter trend trading doing scalping
you can see all of that information
right here in this video
and if you guys enjoyed this video and
you got some value out of it and you
like the way that i teach consider
subscribing to the channel by clicking
this button
right here thanks so much for watching
and we will see you in tomorrow's live
stream
stupid eyebrows literally in my eyeball