Does the well-known saying in the title have a reason to exist on the financial markets? I think yes … after all, the Technical Analysis is based mainly on the history of the financial instrument under study, and on the basis of the repetition of certain formations from the charts, ideas for setups arise.
Let’s look at the current EURUSD chart and look for the recurring behavior of this pair.
On the H4 chart, I indicated two divergences that have already been implemented, and the price went according to the principle – divergence bullish – div (+) and up the price goes, and another divergence bearish- div (-) and the price fell. Currently (10.09 hrs 12:15) on MACD histogram are attempts to create a local minimum (green bar in the histogram) and if this process is continued and the MACD grows, another divergence will be created, this time bullish. It is worth observing how the situation on the pair graph will develop and consider going long after confirmation of the mentioned div (+) and the appearance of a clear PA signal, eg a candle with a long bottom wick on the lower TF. Detailed description of the used strategy can be found here: PA+MACD
