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MASTER THE DIVERGENCE ENGINE. In 2026, trading retail chart patterns isn't enough—you need Asymmetric Momentum Confluence. In this advanced technical masterclass, I break down the Directional Index Divergence Strategy, a high-precision trading framework built specifically for capturing powerful trend continuations in high-velocity OTC asset markets.

Instead of relying on the standard Average Directional Index line alone, I expose how the structural divergence between the $+DI$ (Plus Directional Indicator) and $-DI$ (Minus Directional Indicator) lines uncovers hidden accumulation and distribution. To ensure maximum execution safety, I layer this with the dual-momentum filtering of the Williams %R (tracking micro-velocity and immediate overbought/oversold exhaustion) and the MACD Indicator (validating macro-level structural momentum). Stop trading noise and start using data-driven, rules-based confluence to ride institutional-level expansions with mathematical precision.

Open Demo Trading Account: https://pocketoptioncapital.com

📖 The ADX Divergence Confluence Blueprint:

1. The Directional Index Divergence Engine: Deconstructing the $+DI$ and $-DI$ relationship.
2. Trend Continuation Framework: Why DI divergence acts as an early warning for structural trend extension.
3. The Micro-Velocity Layer: Calibrating Williams %R to confirm rapid-fire price exhaustion.
4. The Macro-Momentum Shield: Using the MACD histogram and signal line to filter out false breakouts.
5. EXPLICIT ENTRY CRITERIA: The exact moment all 3 indicator variables align in real-time.
6. LIVE MARKET AUDIT: 6 Technical setups analyzed on the asset charts.

🔥 READY TO UPGRADE YOUR TECHNICAL LOGIC? Hit LIKE, SUBSCRIBE for more institutional-grade software and strategy audits, and comment "DIVERGENCE" below!

⚠️ Disclaimer: Trading OTC and real-market financial assets involves significant risk of capital loss. Technical indicators are mathematical models based on historical price data and do not guarantee future performance. This content is for educational purposes only and is not financial advice.

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#ADXIndicator #MACDStrategy #WilliamsPercentR #TechnicalAnalysis #ConfluenceTrading #DayTrading2026 #TrendContinuation #PriceAction #TradingIndicators #ForexStrategy

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Transcript
00:01In this video, I'm going to be trading OTC currency pairs, utilizing three indicators,
00:09the ADX indicator, the Williams Percent R indicator, and the MACD indicator.
00:15Gus Schmidt here, and I'm back again with another trading video.
00:18So today I'm on the pocket option platform, and I'm going to be trading OTC pairs, currency
00:26OTC pairs.
00:27So if we click on the assets icon at the top left here, pocket option has various assets
00:34available to trade.
00:35They have currencies, cryptocurrencies, commodities, stocks, and indices.
00:41So since I'll be focusing on OTC pairs, I've already checked off the OTC pairs that are available
00:48to trade on the platform.
00:51That way they can show up at the top of the chart here.
00:55Here, when you check off the star icons, and I can quickly go through each pair and analyze
01:02them individually here.
01:05Okay.
01:06So I'm going to be utilizing three indicators.
01:09The first indicator is the ADX indicator.
01:12So if we click on the indicator icon here, the ADX indicator is here, the Williams Percent R indicator
01:26is down here, and the MACD or Moving Average Convergence Divergence indicator is here.
01:38Alright, so for the ADX indicator, when I click on the pencil icon, I have the ADX smoothing
01:47set to 14, and the DI length set to 7, and in the style settings, I have disabled the ADX
01:55line.
01:56We're not going to need that.
01:57It's enabled in the default settings.
02:00And then I've increased the line width for the plus DI line and changed the color to green
02:05two pixels.
02:06The minus DI line, I've changed the color to red two pixels.
02:12Okay.
02:13We can go ahead and save that.
02:15For the Williams Percent R indicator or the Williams Percent Range, I've set the period to 7,
02:21and in the style settings, I've only changed the line width of all the lines to two pixels
02:30each, 2px.
02:31Alright, so we can go ahead and save that.
02:33And for the MACD indicator, I've maintained the default settings, fast period 12, slow period
02:4426, signal period 9.
02:47Okay, and then for the style settings, I've maintained all the default settings, so we
02:54can go ahead and save that.
02:56For the candlestick charts, I've changed the candles to Japanese, 30-second candles, 30-second
03:09regular Japanese candles.
03:11And for my trade timer, I'm going to be setting it to two minutes, so I'll be taking two-minute
03:18trades while looking at these 30-second Japanese candles.
03:22Alright, so what I'm going to do now is I'm going to pause the video and look for some trade
03:27setups.
03:31Okay, so I'm on the USD-EGP-OTC pair, and I just took a sell trade here.
03:38And the reason why I took the sell trade, first of all, we're seeing a bearish trend occurring
03:44currently in the price of the currency pair here.
03:47And then secondly here, if you see the divergence, the ADX, the divergence of the two ADX lines
03:53here, a growing divergence.
03:56And then if we look at the Williams-Percent R line, we're seeing that it's holding steady
04:01below the minus 80 line, which tells us that the strength of the current bearish trend is
04:08strong.
04:09And then if we also look at the MACD indicator here, we're beginning to see these red histogram
04:16lines growing in length here and printing below the zero line.
04:22So all three of these four confluences, actually, when we take into account the price action,
04:29the divergence, the ADX divergence, the strength of the Williams-Percent R telling us the strength
04:37of the bearish trend and the MACD indicator, printing histograms, growing histograms below the zero
04:45line, suggests a continued bearish push to the downside in the price of this currency pair.
04:53So let's monitor this trade and wait for the expiration.
05:28Okay, so that trade was in the money.
05:30All right, so I'm going to pause the video and look for our next setup.
05:36Okay, so I'm on the USD-CAD-OTC pair, and I just took a sell trade.
05:44Now, similarly to the previous trade here, we're seeing with the price action, we're beginning
05:51to see a strong bearish trend here starting to occur.
05:55And then the ADX indicator is showing us a growing divergence between the lines here.
06:04If you notice.
06:07Thirdly, we have the Williams-Percent R holding steady below the minus 80 line, which tells
06:12us that the strength of the bearish trend is still relatively strong.
06:17And then the MACD indicator, the histograms are printing below the zero line here.
06:25So all of these confluences suggest a continued bearish movement to the downside over the next
06:32two minutes.
06:33So let's monitor this trade and wait for the expiration.
06:37Okay.
06:59So let's go.
07:06So let's go.
07:27okay so we lost that trade although all these
07:33okay so i'm on the great british pound or c dollar otc pair and i just took a buy trade
07:39here
07:40and the reason why i took the buy trade is if we're looking at the price action here we're seeing
07:45a
07:45current bullish momentum here in the candles from bottom left to top right secondly the adx
07:54the the plus di line is holding steady above the minus di line here
08:01then we have the wins percent r line holding steady above the minus 20 line here
08:07which suggests that the bullish trend is relatively strong
08:12and then we have the macd at the bottom here the candles although thinly printing they're still
08:19printing above the zero line here so all these confluences suggest a continued bullish
08:26push to the upside over the next two minutes so let's monitor this trade
08:31and wait for the expiration i also took three trades here and that's to help recover the loss of the
08:58okay so all three trades were in the money okay so i'm on the canadian dollar swiss franc otc pair
09:08and i just took a sell trade here and the reason why i took the sell trade is
09:14first of all the price action is showing a start of a bearish trend here then we have the adx
09:22line
09:23the adx indicator showing a growing divergence between the minus di line here the red minus di line in the
09:30green plus di line a growing separation of the lines then if we look at the winds percent
09:37r line it's showing the line holding steady below the minus 80 line or hovering at around the minus 80
09:46line here
09:47so
09:50then we also look at the
09:55macd line here the macd histogram
10:00and that's telling us if we look at the the lines here they're sloping downward so
10:08these three confluences
10:12really four confluences suggested continued bearish push to the downside over the next two minutes in
10:20the price of the currency pair so let's uh monitor this trade and wait for the expiration
10:25correction
10:27so
10:37you
10:38you
10:38you
10:38you
10:58okay so that trade was in the money all right so i'm going to pause the video and look for
11:04our next
11:05setup okay so i'm on the usd idr otc pair and i just took a buy trade here and the
11:18reason why i took the
11:19buy trade is first of all if you look at the price action here there appears to be a growing
11:27bullish
11:28trend the start of a bullish trend here whereas previously the price had been consolidating with
11:37no clear trend secondly the adx indicator is showing us a divergence between the lines
11:50then if we look at the whims percent r line here it's holding steady above the minus 20 line
11:56which suggests the the strength of the bullish trend is still relatively strong
12:02and then thirdly the macd line the macd indicator histogram lines are printing above the zero line
12:10here and the the signal line the macd line and the red signal line are both trending upwards
12:19so this suggests a continued bullish push to the upside in the price of the currency pair
12:28so let's monitor this trade and wait for the expiration
12:34you
13:00okay so that trade was in the money all right so let me pause the video and look for the
13:06next
13:06trade setup
13:10okay so i'm on the euro usd otc pair and i just took a sell trade here
13:16and the reason why i took the sell trade is we're seeing a bearish trend in the price of the
13:23otc pair
13:24here from on the chart from top left to bottom right then if you look at the adx line the
13:33minus di line
13:35is diverging from the plus green di line then we have we look at the whims percent r line it's
13:42holding
13:42at around the minus 80 line here dipping below but it's holding at the minus 80 line then if we
13:52look at
13:52the macd indicator here the bars are printing below the zero line here
14:01so all of these confluences suggest a continued bearish push to the downside
14:06so let's monitor this trade and wait for the expiration
14:31so let's monitor this trade in
15:03so
15:05okay so that trade was also in the money all right so i'm going to pause the video and look
15:11for one
15:11last setup okay so i'm on the usd russian ruble otc pair and it's by trade here and the reason
15:25i
15:25took the by trade is we're seeing a divergence of the green plus di line and the minus di line
15:33here
15:33uh growing separation of the two lines here the beginning of a bullish trend occurring here
15:41the price had been consolidating here ranging but we're beginning to see this the beginning of a
15:49bullish trend secondly here the well the winds percent r line has crossed above the green minus
15:5720 line here suggesting that the bullish trend is relatively strong and then if we look at the macd
16:06indicator here the histogram lines are growing in length uh and printing above the zero line along
16:14with the the green macd line and the signal line the red signal line sloping upwards so all
16:24these confluences suggest a continued bullish push to the upside in the price of uh usd rub
16:33russian ruble over the next two minutes so let's monitor this trade and wait for the expiration
17:02okay so that trade was in the money so i'm gonna end the trading session here uh if you like
17:09the video
17:09please give it a thumbs up subscribe to my channel if you're interested in keeping up with my latest
17:15trading strategies i have a link to the trading platform in the video comments and or in the channel the
17:25video
17:26description or the channel bio
17:29also i wanted to make note that i've been risking about one percent of my capital uh except for the
17:37the trade where i took the three trades in order to help recover the loss of the previous trade
17:46uh you want to grow your account slowly but surely so we don't want to risk huge amounts of our
17:52capital
17:53because you will incur losses occasionally and those losses if you risk too much uh they'll result in
18:01uh huge losses as well so the idea is to grow your account slowly but surely um
18:10so yeah this is the trading strategy that i've been utilizing for the past few weeks it's been
18:16really working well for me and um i hope you like it so i'll see you in the next video
18:22gus schmidt
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