Here is another good example real-time on AUDUSD . I wanted to repeat the process and share some tips based on my own experience.
1) We found a clear downtrend (series of HH,HL)
2) The downtrend is broken and a Higher High is formed (convergence)
3) We confirm the convergence on oscillator and mark the level of convergence on D1 chart. Price usually reaches this level and often exceedes it
In this strategy the DEEPER THE BETTER, i prefer a pullback at least to the 0.61 fib retrAcement or more. Sometimes off course prices makes a shallow pullback and rallies but doesn't matter, there are many setups all over the market.
We can use this strategy on lower times frames also. Recommended combinations:
After we found a convergence we switch to a lower TF, in this case H4
We found two additional levels of S/R as usually, SL below the last level of S/R
Confirmation is the first green candle. Beeing strict Its a little late now but his post is educational (we can off course enter at current price)
A divergence is already in play.
There are many types of divergences: regular, hidden, extreme, exagerated, etc. Sometimes its not "easy" to spot a divergence.
One additional tip would be to have a deep study of different types of divergences. There are good courses about it.
Thats all, lets see how this strategy works real-time here on AUDUSD .