The Correct Way to Use Divergences
“The Power of Divergence” is the second volume of the series “Trading with the Trendlines.” The book explains a strategy applicable in every market (forex, equities, commodity...), and it is a combination of divergence, trendline, and a little of Fibonacci; a simple strategy that seeks to exploit the reversal of a market.
What you will read in the book, is a correct way to use the divergences, in particular, the one between the price and Commodity Channel Index (CCI). Every aspect is well explained, including the proper position sizing, with many examples.
Easy and clear is the identification of the target profit and stop-loss of the strategy. Not only. Depending on your account, I will also explain to you the correct position sizing, for proper money management.
If you are a beginner, do not worry; the first two chapters will provide you with adequate knowledge for understanding the strategy and using it correctly.
Do not be tricked by the fact that the book is free. The strategy, if you use it correctly and with money management appropriate to your account, will give you a high percentage of profitable trades.
However, it is recommended to combine the strategy with the fundamental analysis and open a position only if both give the same signal.