EURGBP had bearish HD in H4. MACD entered the trading zone crossing below zero by just one bar and went up. Entry in M5 would have been stopped out. Do you use any filter in H1 for this scenario?
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DislikedBased on Chamane system, I attempted HD bullish trade execution in GBPCHF in demo. D, H4 & H1 are in uptrend. HD bullish divergence noted in H4 (refer I vertical line). MACD crossing zero noted in H1 (refer II vertical line) and entry is in M15 @ 1.3347 (when MACD crossed above zero). Trade was stopped @ 1.3330. Can we make re-entries in M15 as long as MACD stays/crosses above 0 in H1? Would like to hear your feedback on trade execution and understanding of the system. {image} {image} {image}Ignored
DislikedEURGBP had bearish HD in H4. MACD entered the trading zone crossing below zero by just one bar and went up. Entry in M5 would have been stopped out. Do you use any filter in H1 for this scenario? {image}Ignored
Disliked{quote} You are right, there was an entry signal on the 1 HR chart when MACD crossed the zero line. But then it reversed shortly after and crossed back the zero line upwards. If you put your stop loss at the last swing high, the trade is still open and there is a chance that it will go down if MACD crosses the zero line again on the 1HR chart. There is still a potential second entry because a HD pattern is still valid on the 4HR chart. A second option is to close the trade after the second cross of the zero line on the 1 HR chart. It would have...Ignored
DislikedAttached is the screenshot of US30 (DJI) index. Hidden divergence in H1, Trade Zone identified in M15 and entry was looked in M5. Once the first entry is made and trade is closed in M5, how should the second entry be made when MACD line does not cross zero level from above? Second query is on the time compression; Is the above usage of chart timeframes sound ok? Is it acceptable to identify the trade zone in a timeframe that is 4 times smaller but enter trade in a timeframe that is either 8 or 12 times smaller. {image}Ignored
Disliked{quote} According to Greene, the entry should be made in a a timeframe 8 to 12 times lower. He even gives examples of timeframes a lot lower than that. In your case, I would suggest using the 1 min or 2 min TF if your trading platform allows it. Using the 5 min TF is not wrong because it follows the principles of a top down approach, but for cost averaging, I would personally follow Greene's advice. In the trading zone, I wait for every signal in the lower TF, so MACD has to come back crossed the zero line up before initiating another signal to...Ignored
Disliked{quote} According to Greene, the entry should be made in a a timeframe 8 to 12 times lower. He even gives examples of timeframes a lot lower than that. In your case, I would suggest using the 1 min or 2 min TF if your trading platform allows it. Using the 5 min TF is not wrong because it follows the principles of a top down approach, but for cost averaging, I would personally follow Greene's advice. In the trading zone, I wait for every signal in the lower TF, so MACD has to come back crossed the zero line up before initiating another signal to...Ignored
DislikedWhen evaluating HD, usage of immediate previous high/low in price as well as indicator is what I have done so far. Do you use one or two previous highs/lows although the immediate one does not create HD? In addition to entry methods we have discussed above which in turn gives top-down approach, what other confluence factors do you use? {image}Ignored
Intermediate chart (4-6 times lower):
Trading chart (8-12 times lower):
DislikedWhen evaluating HD, usage of immediate previous high/low in price as well as indicator is what I have done so far. Do you use one or two previous highs/lows although the immediate one does not create HD? In addition to entry methods we have discussed above which in turn gives top-down approach, what other confluence factors do you use? Striking this for time being as it was briefly answered by Chamane in his initial reply to my post in Page 94. Will reserve this for a detailed future discussion. {image}Ignored
DislikedSimilar to above post, "Nifty IT" index has got regular/classical divergence in Daily and hidden divergence in H4. I avoided taking a trade in either direction due to conflict. Please share your thoughts of approaching this scenario. {image} {image}Ignored
Disliked{quote} Can't you just trade both at the same time? Same system applied, just different timeframes(?) Sounds weird maybe, but i think if you just apply all the rules, you can trade both timeframes at the same timeIgnored
Disliked{quote} Can't you just trade both at the same time? Same system applied, just different timeframes(?) Sounds weird maybe, but i think if you just apply all the rules, you can trade both timeframes at the same timeIgnored
Disliked{quote} Yes, I can trade both sides but was lost on directional bias. If you have taken both sides in the past, was there any false breakout move issues? Earlier, I used to enter based on trend line break on price closing outside the trendline. However, after employing the lower timeframe drill down entry method, i'm not using trendline rather would say don't know its combined usage. How do you do that?Ignored