Price/Oscillator divergence

turtle trader

Active member
172 6
I've noticed a divergence between the price & oscillator (price has hit a higher hi & osc (CCI - 20) has failed to do so) on £/CHF (15 min chart) & intend to short any break below the current congestion.

I've already done the same on $/CHF (shorted @ 13285) which seems to be headed in the right direction.

Trading this type of divergence isn't something i've done b4 & would be interested in any comments

cheers
Turtle :D
 

turtle trader

Active member
172 6
Here's the chart (hopefully):

(Sharky: Attachment deleted because it didn't open correctly - TurtleTrader please retry)
 

Newtron Bomb

Experienced member
1,602 87
Hi

Divergences are pretty useful and ther are many peeps who love them....

Here are some examples of a divergence in gbp/usd , although i shorted this because of a double top and a smaller double top in the second peak you can see in cci (20) and rsi (14) that they would have been good indications for a potential short which did turn out very well

The second chart is the 5 min chart and shows the smaller double top. Patterns within patterns :cheesy:
 

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