For a technical trading system, we do not care about anything else but the technical factors such as price movement, divergences, indicator cross over etc. Here I want to show a nice SELL position on EURJPY 5 July 2013 M15 time frame. There is a bearish divergence that is confirmed with a trendline break. This trade setup has given me about 90 pips profit.
A trendline break is a very good confirmation for divergences. Open position only when divergence is followed by a trend line break. On many cases, divergence occur several times (2-3 times) before the price actually reverse or make a deep correction. So, a trend line break will confirm the divergence and save us from floating.
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