A good divergence which followed by trendline breakout trading is a good entry point to get some nice green pips. Here is my trading setup on EURJPY on May 15th 2013. I use M15 timeframe to catch 20 pips target.
On the chart, price creates two significant higher high which are outside the upper Bollinger Bands. Then, compare those two higher high with CCI indicator and it shows a clear divergence here. Actually we can go short confidently because the price failed to break the resistant line (red dot line). But a trendline breakout also gives a good entry confirmation.
When price opened below the trendline, I go short and the lower BB bands is my target. As you can see, the trade above gave me +24 pips to my basket.
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