19-08-2022 _ EDUCATIONAL _ Short Term Bearish Idea _ EURCHF H1

Strategy: Divergence followed by Convergence...Consolidation/Pullback and further Continuation

0- Bearish Divergence on MACD Histogram.
00- Move down because of Bearish Divergence.
1- Hidden Divergence, suggesting a move UP.
2- Move UP resulted in formation of Double TOP. Double Top coupled with Bearish Divergence on MACD MAs.
2A- Confluence of Double Top and Bearish Divergence resulted in a move to the DOWN SIDE.

Trade 1:
Entry @ Close of Bearish Engulfing Candle.
Target @ Nearest Support
Target Achieved ..... 40 Pips

3- Price action formed new LL thus forming Convergence. Convergence suggests Consolidation / Pullback followed by further continuation to the Down Side and in thus case pullback happened.
4- Pullback is blocked by Hidden Divergence and Hidden Divergence resulted in Trend Continuation to the Down Side giving us an opportunity to enter second trade with candlestick pattern.

Trade 2:
Entry @ Close of Inverted Hammer Candle.
Target @ Nearest Support
Target Achieved ..... 38 Pips

Note: Its always wise to set your Targets a little Shy of the target Support / Resistance.

HAPPY TRADING