Divergence/Currency Strength example: BoE Announcement

Here is a quick example of a Divergence driven Tradeset.

as explained in the post about “Divergence First”

the Bank of England Announcement

no research has been done regarding the outcome.

steps to do:

First: “check divergences”.
GBP is wide up, which makes it very easy, we search the oposite Currency which is New Zearland Dollars (NZD)

to “normalize we need NZD to go up or GBP to go down, the corresponding ForexPair is GBPNZD.

we just concluded NZD to go up .. so its Buy signal for GBPNZD

and here is what happened:
117 pips in less than 10 minutes 😉

just to be sure, i posted this in the SwingFish Chatroom

and on Twitter to avoid any backlash regarding this was “edited”

oh, I also mentioned to short sell EURGBP as a backup (the divergence where not that high)

61 Pips in less than 5 minutes

Links:

• post about Divergences in News releases
• real-time data on the Currency Divergence page