13 March 2008
Divergence that can "kill" you ! Be smart, stay put !
Hello my friends,
I would like to get your attention with this, because it happens many times and many traders lose high amounts of money.
You have bellow 2 charts: EUR/USD and GBP/USD which formed a important divergence:
This scenario is very known to many of you and you will say "this is the time to enter short and catch a big move". Here I will say: "STOP" !
This is what the Big Guys want you to do, to waste your money in a hurry. Let other traders that don't know this kind of things to get fried :)
So, you can wait very simple for MACD to turn down and confirm with 4-5 bars the trend in that direction and tomorrow you can catch the profit from a fair signal.
Just be careful and let the price oscillate till it gets tired :D
Happy PIPpin' !