I think our dialogue and revealing thought processes also make much more sense when the traders are in the same timeframe. timeframe makes all of the difference in the world... This is why I can learn from you... for example Tradeviper is much short in some of his methods... Michael B.
My personal observation is that whenever there is a definite divergence on the 240 min chart in FX one should be ready to expect price to head back towards 200ma on that frame. In the mean time you will have 1, 5, 15, 60 to play with. BTW have a look at the signal line on MACD on 240 frame and observe what will happen once it passes 0 mark, but the one reacting to that will either be chopped to pieces as momentum normally starts before that on 240 or will make a lot less pips than positioning foreseeing this future possible event that offers high probability. But of course in the meantime I have to hold on to my balls. This is a relatively new way of trading for me as I started off with reacting rather than positioning, but after almost a year of looking into divergences and listening to B1S2 ET's Godfather in position trading/divergences I know which ones have better odds.
Some divergences are a pain in the ass, this being one of them. It's as if 'they' want to make sure every Tom, Dick & Harry do not believe this pair will decline and will start taking long positions & then the eventual true breakdown hits them harsh as they ones positioned start driving bids lower & forcing fresh longs to start closing. That's what I've learnt in the last year Still short & ready for it, bring it on!