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Vdubus Divergence Wave Theory

  • #1
  • First Post: Edited Oct 19, 2019 1:08pm Jan 31, 2019 10:04am | Edited Oct 19, 2019 1:08pm
This post is in continuation of my trading strategy posted here : https://www.forexfactory.com/showthr...69#post9221169

Ok So focus primarily on trading divergences, Being that early on in my trading career I identified an algorithm hidden within ' All Oscillators ' going by one simple rule
- Divergence Projects the next trend break & or reversal. ( Please refer to my previous post above )

It wasn't until recently I paid no attention what so ever to the histogram of the MacD. I saw this as unreliable... Until now.
We all are pretty much familiar with divergence & hidden divergence but nothing in true relation to price pattern formations.

The rules are simple:

Follow the money !

1. to 2. = Divergence
2. to 3 = No Divergence = Weakness = Reversal / Breakout

the secret is to identify the Weakness ( No Divergence ) as to it's opposing force would be either regular divergence or Hidden Divergence favouring a trend continuation setup.

Note the last chart pic. A break of its formation is in it'self a valid signal. ie. The histogram formed a new lower low indicating a Short signal as well as the divergence trend break to the down side.

...Enjoy

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  • #2
  • Jan 31, 2019 11:21am Jan 31, 2019 11:21am
My last few trade setups:
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  • #3
  • Jan 31, 2019 11:38am Jan 31, 2019 11:38am
Very nice charts vdubus! Will follow!

PTB
Those who don't believe in magic will never find it
  • #4
  • Jan 31, 2019 12:00pm Jan 31, 2019 12:00pm
Nice to see you back, vdubus!

Would you say this is a valid setup?
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Don't give up on your dreams. Keep sleeping.
  • #5
  • Jan 31, 2019 12:15pm Jan 31, 2019 12:15pm
I'm so glad to see a new topic by you. I've learned a lot from you before .
keep going .
  • #6
  • Jan 31, 2019 12:42pm Jan 31, 2019 12:42pm
Quoting Artcool
Nice to see you back, vdubus! Would you say this is a valid setup? {image}
Looks like your using the wrong macD indicator.
Short term may well do play to the down side but over all id myself would be looking for a trend break long. That is a weekly chart ? you'll die of old age first lol
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  • #7
  • Jan 31, 2019 1:03pm Jan 31, 2019 1:03pm
Let the market tell you what to do
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  • #8
  • Jan 31, 2019 1:14pm Jan 31, 2019 1:14pm
vdubus, could you please check this out ( based on your idea ) and see if I got your theory ?

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  • #9
  • Jan 31, 2019 1:22pm Jan 31, 2019 1:22pm
Quoting vdubus
Let the market tell you what to do {image}
I don't understand what are you trying to say by finding divergences on both sides of macd at the same time . what is the point ? do you find the divergence on one side and then get the confirmation from another side of macd ?
  • #10
  • Jan 31, 2019 1:25pm Jan 31, 2019 1:25pm
Trade set up CADJPY 15 min
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  • #11
  • Jan 31, 2019 1:41pm Jan 31, 2019 1:41pm
Quoting vivaldi2
{quote} I don't understand what are you trying to say by finding divergences on both sides of macd at the same time . what is the point ? do you find the divergence on one side and then get the confirmation from another side of macd ?
It's a fight between bulls and bears so you can have divergence on both
  • #12
  • Jan 31, 2019 1:46pm Jan 31, 2019 1:46pm
Quoting vivaldi2
vdubus, could you please check this out ( based on your idea ) and see if I got your theory ? {image}
Try and identify the trend on the macd ?
Here the 1.2.3 formation failed with the histogram putting in a new lower low breaking the formation following the trend
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  • #13
  • Feb 1, 2019 12:10am Feb 1, 2019 12:10am
Quoting vdubus
{quote} Try and identify the trend on the macd ? Here the 1.2.3 formation failed with the histogram putting in a new lower low breaking the formation following the trend
I got it, thanks !
Could you please check this 2 micro waves on your screenshot and tell me why you ignored those ?
Number 1 :
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Number 2:
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  • #14
  • Edited 3:33am Feb 1, 2019 3:21am | Edited 3:33am
Quoting vivaldi2
{quote} I got it, thanks ! Could you please check this 2 micro waves on your screenshot and tell me why you ignored those ? Number 1 : {image} Number 2: {image}
Each leg the market moves is in itself it's own trend. Looking at the first chart say you see a 5 wave structure. but over all the rules are still respected. Ideally the signal lines paint the boarder scale of price movement.
https://www.tradingview.com/chart/EU...of-divergence/
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https://www.tradingview.com/chart/US...ng-Divergence/
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  • #15
  • Edited 10:34am Feb 1, 2019 4:20am | Edited 10:34am
Potential setup NZDCHF 15min
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Failed 1.2.3 reversal Histogram created a new Higher high Hit long target
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Price rejected at resistance and the histogram broke formation as originally intended
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  • #16
  • Edited 10:29am Feb 1, 2019 7:53am | Edited 10:29am
Quoting vdubus
Trade set up CADJPY 15 min {image}
Bring stops up to break even
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Target achieved
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  • #17
  • Feb 1, 2019 10:51am Feb 1, 2019 10:51am
Quoting vdubus
{quote} Each leg the market moves is in itself it's own trend. Looking at the first chart say you see a 5 wave structure. but over all the rules are still respected. Ideally the signal lines paint the boarder scale of price movement.
Sorry, I didn't get what you mean and why those positions are out of your theory ...
  • #18
  • Feb 2, 2019 4:41am Feb 2, 2019 4:41am
Quoting vivaldi2
{quote} Sorry, I didn't get what you mean and why those positions are out of your theory ...
They're not I was trying to point out that there are trends with in the trends
  • #19
  • Feb 2, 2019 4:46am Feb 2, 2019 4:46am
Quoting vdubus
Potential setup NZDCHF 15min {image} Failed 1.2.3 reversal Histogram created a new Higher high Hit long target {image} Price rejected at resistance and the histogram broke formation as originally intended {image}
Finally
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  • #20
  • Edited 5:02am Feb 4, 2019 2:12am | Edited 5:02am
Hey vdubus,
Can you please confirm this setups ?

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and :
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