EASY H1 trading using divergence and candle sticks

Good Day Everyone,

Nice thread.

For AUD/NZD H1,

Observed Bearish Regular Divergence. Using MACD instead of RSI, hope posting allowed.

Thanks

Hi Shyean,

Thanks for contributing! So, how did the trade play out for you?

Good Day Kei78,

I've exited the trade with small loss before Yellen's speech.

Thanks for asking

Understandably. Yellen tends to make things get really crazy!

Good Day Everyone,

For GBP/JPY H1,

Observed Bullish Hidden Divergence using Stochastic.

Thanks

Price is at support CHECK.
Valid Candlestick. CHECK.
Divergence. CHECK.

Lets see how this plays out!
Remember to always manage your trades, I will often pull my trades before desired TP because of price action analysis.

Ahh I love this example of when not to trade Divergence! Sure divergence has printed and a valid candlestick has printed. BUT!!!! Price is not yet to resistance. If you zoom out just a bit more.



You will see price is close to a really strong resistance. Personally this is not a trade for me, it is to risky, I can see price running up to 1.31400 to 1.31500 before reversing.
I am personally eyeing the 1.31400 to 1.31500 area, lots of confluence in that area if you look back in your charts.

And tp has been hit. Nice divergence scalp!

OK now that I have bagged some pips let me tell you what I think this pair will do. Based off of my technical analysis I believe this pair will continue up to the 77.000 area and then find resistance. Now the reason why I didn't set my tp in that area. First off the time of day it is for this pair. The Yen and the Aud are no longer in their time session, which means less volume, second reason is my time in front of the screen. I know I wont be in front of the screen after the London closes, so If this pair still hasn't made it to the 77.000 level and its ranging I would have to close my trade per my rules ( I do not trade if I am not in front of my computer screen watching). 3rd reason is I had strong belief that this pair would indeed go up and hit or come near my desired tp in the time frame I have to trade.

You see sometimes you have to be reasonable with yourself and take reasonable actions to be a winning trader. Set your rules and follow them!

My analysis is possibly wrong here. As you can see the USD/CAD is now dropping. If you are a divergence scalper like myself you would have bagged some pips. BUT...I had a plan and I stuck to it and that is important to me. You can have a plan and be wrong and not lose...just like I did. I didn't take the trade, sure I would have hit my TP on this trade BUT per my analysis and rules I didn't take the trade and I didn't LOSE! Forex is constant and your learning should be to. I am fine with not taking the trade...there will be much more trades that will line up with my plan that will be winners! Stay positive my friends!

Guys here is another divergence example I want to talk about. Looking at this chart you can see that there is clearly divergence from the .75500 level all the way down to the .75000 level. Now im sure some people would look at this and not really know where to get in the trade at. Or maybe they are new to divergence and would get in as soon as they see it print. BUT I want to show you how many people can make the mistake of getting in to early and losing. I will say that just because Divergence is printing that doesnt mean its a good trade. and this would be an example. Now I will show you exactly what you could have done to get a better idea of when to take the trade.



As you can see I have zoomed out so that I can see what the bigger picture looks like. Now after zooming out I could clearly see that the support was around the .75000 level. Now with divergence already printing and the market dropping from .75500 I would be looking for a trade at the .75000 level not at the .75500 level. Guys sometimes divergence is not as easy as it seems, sometimes you have to look at the big picture to understand. Remember confluence is key to being successful divergence trader. Stay tuned!

Marching up to resistance, lets see if we can find a trade!

Follow me on twitter for up to date trades #piptimefx.

Tons of possible setups, EUR/GBP, GBP/USD, EUR/CAD, USD/CAD, and GBP/AUD.

Called out yesterday that price would return to the 77.000 level. Although I would have bagged some major pips on this one I do not regret getting out of my trade when I did. Have a plan and stick to it, make your money and get out of the market! Although I had a intuition that price would return to the 77.000 level I wanted nothing to do with holding until it did because its not my trading plan!

GBP/CHF double pinbar setup. In at 1.28154 out at 1.28533. EASY SCALP!

My EUR/CAD divergence trade is still in the works. Lets keep an eye on it!

Out of EUR/CAD at 1.47820. Another great trading day in the books. See you tomorrow!

Morning PIPTime

What indicators do you use? Good setups!!!!

Cheers

Hello Jdforex75.

I use a couple ADR indicators, a time indicator, support and resistance indicator, round numbers, and of course RSI. I will post my indicators below and template if you want your trade setup like mine.

hello piptime


i think you are doing excellent...
i am trying since some weeks with the divergence (the only set up with good propabilities i found is on 4 hour timeframe ..) i ..try also the hidden which is very interesting also...

as you look very experienced on this matter would be very usefull for us to gice some explanations of your trades... because not all divergences are accurate

anyway any help on this very interesting maatter would be appreciate...thnx in advance

Hi KouKou,

Check your message inbox.

My trading style for Divergence is simple. I will list them below in order.

1. Structure. Find support and resistance
2. Wait for price to enter into support/resistance.
3. Verify Divergence has occurred.
4. Find valid candlestick to enter trade.
5. Set SL and TP.
6. Monitor trade.
7. MAKE MONEY!

Seven easy steps to be successful! I know there is a lot to those steps, like understanding market structure, understanding price action/candlestick analysis, understanding divergence, where to set SL and TP. I have considered teaching my style and might possibly do so if there was enough interest to do so. I will continue to post in here, on twitter and my blog in the meantime. If you would like to post charts and ask questions I would be more then happy to give my opinion.