Dislikedi can understand this for the first setup (red) for the second (aqua)all i can see if the previous top is lower on AJ and higher on UJ.Ignored
Yes, that is a valid set-up.
What To Pair Divergence With? 10 replies
Divergence and hidden Divergence 122 replies
bo7a method... method for GBP/JPY 205 replies
Divergence method 11 replies
journal for pair divergence method 33 replies
Dislikedi can understand this for the first setup (red) for the second (aqua)all i can see if the previous top is lower on AJ and higher on UJ.Ignored
DislikedI see what you're saying. I didn't understand "agua".
Yes, that is a valid set-up.Ignored
Dislikedbillbss, if i understood correctly, you wait the first bar that closes in the direction of the move...right?
thanks in advance.Ignored
Dislikedthere are many many setups i am and feel the need to came here and ask Bill if this is a valid setup.
for example this setup with CHFJPY making a higher low than EURJPY is valid or the higher low with the vertical yellow line invalidates it?
http://img35.imageshack.us/img35/7704/cjej.gif
i will be gratefull if you have time to comment this trade.Ignored
DislikedHere are a couple more examples.
In the first chart, GBP/JPY is making a new High (4) and EUR/JPY (2) is not.
We will be going short on the EUR/JPY.
We wait until both pairs turn down together. That is where the arrow is. We go short EUR/JPY.
We set out SL at 2x ATR 14. We set out TP the same.
In the second chart EUR/JPY makes a new Low (2) and GBP/JPY does not.
We will buy the GBP/JPY when both pairs turn up.
This happens at the arrow.
We go Long GBP/JPY. The SL and TP are as described above.Ignored
DislikedThat example was taken from early in the thread.
I later defined rules that would have eliminated 1&2, because of the extra wave.
I did this, not because the wave shown as 1&2 would not work, but to try to make identifying these waves and divergences mechanical and less subjective.
To sum up, The first chart with the wave marked 1&2 would not qualify.Ignored
DislikedThanks Bill, that really helps. My other question I've answered for myself since you were quite clear in that the "new high" or "new low" only needs to be acheived by one pair (the one not to be traded). I've adjusted my EA accordingly. The EA already does not consider non-adjacent Peaks/Valleys. I'll be posting it shortly (probably this weekend). Hopefully you will find it useful as a signal or at least a mechanism to draw a few helpful lines and arrows on your chart.
Thanks again!Ignored