The Big "D" Method | Forex Indicator Download - MT4/MT5 Resources

I want to show you how I trade using the big "D" (divergence) on higher time frames. Divergence trading is nothing new and has been around for many years. I use it on 4 hour and above charts, but you can use it on any time frame you like. There are two types of divergence, regular divergence and hidden divergence. I mainly look for regular divergences.

Regular divergence is a sign that the trend may be reversing. When the price makes lower lows, but the oscillator makes higher lows, this is a periodic bullish divergence. When the price makes higher highs, but the oscillator makes lower highs, this is a regular bearish divergence .

Hidden divergence is a sign that the trend may continue. When the price makes higher lows, but the oscillator makes lower lows, this is a hidden bullish divergence . When the price makes lower highs, but the oscillator makes higher highs, this is a hidden bearish divergence .

Let's get on with it. I use four tools to implement this approach:
1) Macd 12,26,1
2) 21 and 200 EMA are about to close
3) Fractal
4) Trend line (very important)

Time range: any
Yes: any

Your chart should look like this. This is live trading and currently my profit on this pair is over 600 pips. I have to go to bed now. I will post entry/exit rules and more live trading examples later. Good night.