Price/Oscillator divergence

[turtle trader]

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

 

[turtle trader]

Sorry - I tried to attach a chart to demonstrate the above, but the technology has beaten me

turtle

 

[turtle trader]

Here's the chart (hopefully):

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

 

[Newtron Bomb]

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: