CCI Divergence breakout AUDUSD 19 June 2013

Actually I want to post any divergence signal that I trade but since I am not a full time trader, I don't have much time to write posts for any divergence signal I trade. But I hope this post is useful for my future trading decision based on divergence. On the example below, I want to show you a nice divergence setup on AUDUSD 19 June 2013 M15 time frame. 

As you see on the chart, AUDUSD has made 2 significant lows but the CCI indicator did not confirm it and start making higher low. This condition is known as a Bullish divergence. Then, draw a trendline connecting peaks on the down trend. When price break this trend line, open Long position and put the stop loss below the last low. Its a good setup since the price move up pretty nicely after break the trend line.

Still confuse? Stay tuned on this blog and you will learn a lot about divergence. See you.