The video discusses how to identify and trade using divergences in the market. The speaker, Artie, explains that divergences occur when the price action and the Relative Strength Index (RSI) are moving in opposite directions. He claims that 99.999% of his success in trading is due to spotting divergences.
Artie explains four types of divergences:
1. Regular Bullish Divergence: When the price is making lower lows, but the RSI is making higher lows.
2. Regular Bearish Divergence: When the price is making higher highs, but the RSI is making lower highs.
3. Hidden Bullish Divergence: When the price is making higher lows, but the RSI is making lower lows.
4. Hidden Bearish Divergence: When the price is making lower highs, but the RSI is making higher highs.
He provides examples of each type of divergence and explains how to trade using them. He also emphasizes the importance of waiting for confirmation and using trend lines to filter out false signals.
Artie claims that using this strategy can result in significant profits and encourages viewers to re-watch the video until they fully understand the concept. He also invites viewers to subscribe to his channel and join his Discord group for further education and discussion.
Here are the key facts from the text:
1. The speaker's name is Artie.
2. Artie hosts a YouTube channel called "The Moving Average".
3. Artie discusses day trading on his channel.
4. Artie uses the Relative Strength Index (RSI) indicator in his analysis.
5. Artie adjusts the RSI settings to have a length of 14, yellow color, and upper and lower bands set to 50.
6. Artie looks for divergences between price action and RSI in his analysis.
7. There are four types of divergences: regular bullish, regular bearish, hidden bullish, and hidden bearish.
8. Regular bullish divergence occurs when price makes a lower low, but RSI makes a higher low.
9. Regular bearish divergence occurs when price makes a higher high, but RSI makes a lower high.
10. Hidden bullish divergence occurs when price makes a higher low, but RSI makes a lower low.
11. Hidden bearish divergence occurs when price makes a lower high, but RSI makes a higher high.
12. Artie uses a one-to-two risk-to-reward ratio in his trades.
13. Artie closes 90% of his trade at the target profit and lets the remaining 10% ride.
14. Artie uses trend lines to confirm trade setups and prevent false signals.
15. The speaker analyzes charts on the one-hour time frame.
16. The concept of divergences works on every time frame, but higher time frames are more reliable.
17. Lower time frames can produce more false signals.
18. The speaker uses TradingView for chart analysis.
19. The link to TradingView is provided in the video description.
20. The speaker provides examples of trades on various currency pairs and indices, including EUR/AUD, AUD/USD, US 30, and German 30.