EUR GBP

Well done, Rossy

I had resistance at 0.8154 but there's "round number" trading at 8160 perhaps? I'm not really sure I follow your question since the bearish divergence occurred at the resistance level but in my experience, it sometimes pays to wait for a test of the RSI trendline formed by the divergence as shown here:

dl.dropbox.com/u/20815047/EURGBPdaily24_10_12.gif

It doesn't always happen and sometimes when it does it's only on an intra-candle basis so it appears later to have never touched.

It's a bit dangerous to simply trade divergences since they do often come in doubles or trebles. Best if you can find a divergence near an important support/resistance and then trade the actual S or R accordingly.

Thanks for the support on this trade guys. 8100 enough for me 3v1 etc.

Question please.
Whys was the trade initiated at 8160 when the RSI showed divergence at a lower price?

Regards RMc

Looks like a distinct possibility of this forming a bearish engulfing candle today too. Nice spot, Rossymc.

my short activated perfectly. now i have taken profits and moved my stop to break even.
Free trade. love it

yep it looks good for a short.
Im gonna place my order at 0.8160 with a 20 pip stop
dyor
remo

Short opp

RSI Divergence

Stop above 8157 (resistance from 11th June)
Target 50ma/uptrend line

screencast.com/t/UQHuRnse

Comments welcome RMc