{quote} Hi, There are more than one way to trade the Hidden Divergence pattern. IntheBox is giving you one, I can also suggest some guidelines I wrote down a while ago. You will find my document attached. It might be of interest to you. You can also follow robust systems like the Elder's Triple Screen. It can look as follow: Select the timeframe you will be trading. Go to the higher timeframe and determine where the trend is going if there is any. You can use the 13 EMA for that purpose. Let's say that the slope of the EMA is up. Get back to your...
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I've read it. It is very thorough and thank you so much for that. It seems like one of other strategies I found on many other sites where the main timeframe gives a HD whilst the lower timeframe should at least have a RD to give a higher probability. Thanks for the idea of trading at a higher timeframe. Cheers
so here is a resistance zone. if price is still within that zone, what are you going to do? {image}
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there was no rd or hd signal during asia session as it went into a range.
during london session, price broke above the resistance zone and retest it with a hd signal for long.
price stalled around a nov 5 resistance zone with a rd signal for short as it approached new york session.
then price bounced up from a round number back to resistance zone with rd/hd signal for another short during new york session.
i took the 2 short entries on a m5 chart and they were good for at least 25 pips each to the round number.
the take from this is only take lower time frame rd and hd signals around higher time frame key levels and not all over the shop whenever you see signals appearing.
location is of utmost importance for successful trades.
{quote} Hi, There are more than one way to trade the Hidden Divergence pattern. IntheBox is giving you one, I can also suggest some guidelines I wrote down a while ago. You will find my document attached. It might be of interest to you. You can also follow robust systems like the Elder's Triple Screen. It can look as follow: Select the timeframe you will be trading. Go to the higher timeframe and determine where the trend is going if there is any. You can use the 13 EMA for that purpose. Let's say that the slope of the EMA is up. Get back to your...
{quote} Hi jusiur, I still consider currency strength in my analysis as an important tool to use. Apart from calculating the strength in an Excel sheet like in Links 1 and 2, there are other ways of doing it. Look at link 3 and 4: Link1Link2Link3Link4...
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Thank you for that, it is a great summary of currency strength analysis. I've been using something similar with EMAs.
Trading the strongest against the weakest helps put the odds in our favor.
hello everyone. I'm watching this instrument. there is a hidden divergence on 4H. On the daily chart, the price is above the cloud and above the red and blue lines (marked with dotted lines). I think that the ideal outcome will be after the price falls to these lines and, having found support, turns up
on the 3-hour chart, I waited for the price to roll back to the important levels I mentioned above. there were two deals in total, I marked them with green arrows after the absorption candles appeared. the first entry into the deal was unprofitable. The second entry into the transaction was successful. The risk-to-profit ratio was just over 1 to 2
There is a 4-hour downtrend on the chart. There is a hidden divergence on the 1 hour chart. I enter a short position on the chart for 15 minutes {image} {image} {image}
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The ks and ts lines of the ichimoku indicator have formed a so-called dead cross, and this is a sell signal. opened another short position
From the screen shots you posted on this you are actually trading "reverse" divergence...which is, IMHO, the "correct" way to trade any form of divergence. You are correctly finding a trend, in this case bullish, and then finding the "reverse" divergence to watch for continuation...NOT call a top or bottom. Trading this way will be very rewarding for you. I congratulate you sir.
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Very good!
very nice picture you show, very inspiring
{quote} The ks and ts lines of the ichimoku indicator have formed a so-called dead cross, and this is a sell signal. opened another short position {image}
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I have closed 50% of all positions. I moved the stop to a safe area. There is also a hidden divergence on the m1 chart. I hope for further price reduction
