Trend Trading

**DIVERGENCE REVERSAL:**

Reversal trade that has double or triple divergence with cluster and mm on reversal bar bouncing off a level. This means the level is above the price on a sell or below the price on a buy. The mini magnet is NOT optional in this setup, it is a key component and MUST be there. There must be at least 3 bars in the opposing direction of the reversal bar. This is to avoid a choppy setup. Expected volume should be meeting or exceeding the expected volume line.

In this screenshot the price had just previously dipped below the red ICE level and had the green Izone providing support. The price could not seem to remain under the red ICE line for long. If the price would have been under the red ICE for several hours, this would have been a trade that would have been less likely to work out.

https://content.screencast.com/users/hale541/folders/Jing/media/78362113-de22-470e-93dc-2ebe1581b176/2017-08-04_1700.png

**DOUBLE OR TRIPLE DIVERGENCE:**

Reversal that has double or triple divergence with cluster on the reversal bar or the bar before the reversal bar and there must be a mini magnet on reversal bar or the bar after the reversal bar. It is best when the price is bouncing off a level. This means the level is above the price on a sell or below the price on a buy. The mini magnet is NOT optional in this setup, it is a key component and MUST be there. There must be at least 3 bars in the opposing direction of the reversal bar. This is to avoid a choppy setup.

The price climbs higher in a long trend, yet Vad A grows smaller. The reversal bar or the bar before the reversal must have a cluster. The reversal bar or the bar after must have a mini magnet.

https://content.screencast.com/users/hale541/folders/Jing/media/c9f261ff-d4b1-42f8-b63d-4635b564bd84/2018-04-05_2034.png

**INSTITUTIONALLY CONTROLLED REVERSAL (ICR):**

This is a reversal setup. A cluster appears in a trend giving you a heads up that something is going to happen. Within 1 to 5 bars there will be a reversal bar with a cluster. The reversal cluster can be on the reversal bar or on the bar before the reversal bar. The entry bar will have a mini magnet. The entry bar can be the reversal bar itself, or any bar within 5 bars that has a mini magnet; however, the mini magnet must be located within the high and low of the reversal bar. This means in the price moves straight down for 5 bars and then lays a mini magnet, this is not an entry bar because the mini magnet will not fall within the high and low of the reversal bar itself. It will already be too far down the trend. If there is a little chop after the setup bar and the mini magnet is 5 bars away but still within the price range between the highest point and lowest point of the reversal bar, that a valid setup.

https://content.screencast.com/users/hale541/folders/Jing/media/b850e9c5-7b1c-4f2c-ae9d-96d6122ffae6/2018-04-05_2202.png

https://content.screencast.com/users/hale541/folders/Jing/media/491ef894-31dd-4990-a46c-a3395c979da5/2018-04-06_2221.png

https://content.screencast.com/users/hale541/folders/Jing/media/b346ef84-1f92-4be0-8abc-28ed6c7f61dd/2018-04-06_2336.png

https://content.screencast.com/users/hale541/folders/Jing/media/a153a27a-8553-4a67-ae6c-7c952fb874dd/2018-04-06_2303.png