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Divergence trading

  • Post #1
  • Quote
  • First Post: May 2, 2007 7:09pm May 2, 2007 7:09pm
Hello everyone
Am a new trader ,actually am still demo trading ive blown up several accounts
the only strategy it hasnt blown up my account is divergence
i use cci and normal stoch with 8-3-3 settings
recently i ve came accross the fx5 indicator wich gives good signals when i see a signal from the fx 5 i just check if the setup is good and worh taking it
i am attaching a picture to see what i mean,as you will see from the pic
the first setup for today was great and worked well the second one the indicator gives works again but i wouldnt take it because i didnt like the set up on cci
i have also drawn with yellow lines a set up in saw my self and the fx5 didnt show any divergence but it looked good to me the only problem was the cci set up wasnt very good but the stoch set up was ,so i would take that trade with very small stakes and that worked well too
By the way i use the 30 min chart and higher as for the lower time fames i use it only if the set up looks very good and more in a scalping way
I am attaching the indicators to check them out
also it would be very helpfull if somebody could make an alert when the fx5 divergence arrow apears it would be a great help
i hope we can discuss about that kind of trading
Attached Image (click to enlarge)
Click to Enlarge Name: div.jpg Size: 49 KB
Attached File(s)
File Type: ex4 FX_Sniper's_CCI.ex4   5 KB | 3,787 downloads
File Type: mq4 FX5_Divergence_v1.1.mq4   13 KB | 3,659 downloads
Nice looking combination of indicators. If you don't mind me asking, what currency pairs have you used with this setup?

Good Luck
hi
mainly on euro and gbp
but i prefer euro for the low spread but gbp gives some really good set ups because it is more volatile
When are the arrows formed?
Are they only formed after the following bar has closed?
Divergence happens when the indicator you are using breaks. if the prices drops through the floor , for example, the macd will not be able to keep up (thus its broke) and it will signal divergence.
  • Post #6
  • Quote
  • Edited May 3, 2007 7:59pm May 2, 2007 10:54pm | Edited May 3, 2007 7:59pm
Quoting RickW00716
When are the arrows formed?
Are they only formed after the following bar has closed?
to be honest i havent watched when the arrows form because am not infront of the screen all the time i dont really know how fx5 works
but i know when it gives a signal to me that means there is an oportunity there ,after that its up to me to decide if i want to take that trade ,how good the set up is accordind to cci and stoch too
thats why it would be good if somebody could make an alert for the fx5 when the arrow apears
so far i have taken around 30 trades with 3 losses only the best set ups
and these 3 losses are on gbpusd because its volatile and hit my stop loss and after that imidiatly going the right way
Another good day fx5 gave a signal which i would take with very small stakes because i didnt like the set up on cci and stoch but it seems it calculated the divergence with yesterdays wave ,remember only the best set ups are worth taking full stake still thought worked for a very modest number of pips
the best set up came later fx5 didnt cought that but i did
but yet again i wouldnt concider that as a taken trade becouse i wouldnt look in to my screen all day long
and at the end another divergence but i wouldnt concider that as a taken trade either for the reason above it didnt worked that well but you could still close for a profit or break even
the yellow lines on the chart are mine to show the divergence
is there somebody who would like to help by putting a sound alert when the arrow on fx5 apears?
Attached Image (click to enlarge)
Click to Enlarge Name: divergence.jpg Size: 59 KB
Thanks for the indicator. This is a good trade for today too:
Attached Image
Demark said it best. "Divergence is a symptom, not a cause." If you understand this sentence, you can do away with indicators that show divergence.
Quoting Dopey
Demark said it best. "Divergence is a symptom, not a cause." If you understand this sentence, you can do away with indicators that show divergence.
Hi Dopey
I'll be quite honest and say I don't understand Tom de Mark at the best of times. He does have the best way to draw trendlines though.

fx11 it looks like this 12, 26, 9 FX5 indicator is the MACD histogram without the MACD lines. If you can get the more traditional MACD indicator you can trade divergence from the histogram and the MACD lines waving. Yes stoch 8,3,3 works well for divergence.

Divergence is a great way to regularly make money, if you can get divergence in more than 1 time frame even better. Good luck with your trading.
snipers divergence indicator isnt any ole MACD. it is different.
Quoting Dopey
Demark said it best. "Divergence is a symptom, not a cause." If you understand this sentence, you can do away with indicators that show divergence.
and what if demark finds out that this is the only way of trading that hasnt blown my account
so whatever makes him happy and whatever makes me happy
Quoting Vantage
Hi Dopey
I'll be quite honest and say I don't understand Tom de Mark at the best of times. He does have the best way to draw trendlines though.

fx11 it looks like this 12, 26, 9 FX5 indicator is the MACD histogram without the MACD lines. If you can get the more traditional MACD indicator you can trade divergence from the histogram and the MACD lines waving. Yes stoch 8,3,3 works well for divergence.

Divergence is a great way to regularly make money, if you can get divergence in more than 1 time frame even better. Good luck with your trading.
Hi Vantage
its not macd
its osma indicator
Live signal on euro 30 min
lets see were it goes
Attached Image (click to enlarge)
Click to Enlarge Name: divergence.jpg Size: 48 KB
by the way not the best signal because cci hasnt a good set up only small stakes and for few pips
open the trade at 1.3590 it went it to a profit for a bit but it doesnt move so out at break even
Quoting fx11
and what if demark finds out that this is the only way of trading that hasnt blown my account
so whatever makes him happy and whatever makes me happy
As usual, the point is missed. The point is that price doesn't change direction because of divergence, it shows divergence because it's possibly getting ready to change. This is reflected in the movement of the price itself. The divergence is just another way to see it. Granted, for most they need the filter, but it's not beyond the capabilities of average folks to study divergence and price movement and figure it out.
Quoting Dopey
As usual, the point is missed. The point is that price doesn't change direction because of divergence, it shows divergence because it's possibly getting ready to change. This is reflected in the movement of the price itself. The divergence is just another way to see it. Granted, for most they need the filter, but it's not beyond the capabilities of average folks to study divergence and price movement and figure it out.
ok Dopey
i havent missed the point
i just beleive trading divergence can be a complete system once you have intedified the best set ups i think odds are in your favor for the trade to go in profit thats all
thanks for your input
I had tried to used the indicators on my charts, but was getting confused by the lines drawn on the indicators and price charts. When identifying divergence, the trend lines drawn should be within the same times and date, and not different between the two, eg., all should be from say 3AM - 8AM. and on the same date What do you think?
Quoting et_phonehome_2
I had tried to used the indicators on my charts, but was getting confused by the lines drawn on the indicators and price charts. When identifying divergence, the trend lines drawn should be within the same times and date, and not different between the two, eg., all should be from say 3AM - 8AM. and on the same date What do you think?

sorry but i havent understood what you mean
could you please post an image to explain better and i will try to help
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