Divergence Pip Range Trading

That looks a neat ADR indicator, Akir, would you mind sharing?

First trade of the day on EURAUD. Price had a good rally during the Asian session and approaching the London open (my start time) price started reacting to the cam level on the time based chart. Below is a 1 hour chart for reference. Very similar to the GBPAUD setup yesterday, I like to see price come close to the EMA when in a solid downtrend. Look at the number of times price has reacted this same level also.



Looking at the pip range chart, bearish divergence occurred and had a clear target in mind should price fall my way. 1.4613 area had been pinged several times and I wanted to get an exit before it bounced. Since writing this post, price has indeed bounced a good 20 pips and whilst it may fall again, it helps from a psychological point of view to get a good, clean exit.



Just taken a long GBPAUD trade at 1.6953.

This trade defines why I enjoy trading so much. You always have to be thinking and evaluating what is happening.

As mentioned above, I entered long GBPAUD at 1.6953. I based this off price approaching support/cam level on the time based chart as seen below. Price had numerous interactions with this level and felt it was a potential area for price to go higher again.



Where it gets interesting is the pip range chart, I've zoomed out a level to give some perspective. My entry was based on the blue lines showing bullish divergence and the fact price was nearing support as outlined on the time based chart. Once I'd entered, price proceeded lower by 20 pips at the worst point.

I was then presented with bearish hidden divergence which i'd usually jump on. However, I resisted exiting the long due to several reasons. Firstly, look at where the Frankfurt session started and how price consolidated at the same level before punching higher. The 2nd reason being we were on the lows of the current session and I'm not a fan of shorting at the bottom of ranges especially when my overall bias is the opposite direction. Final reason was the fact price hadn't truly broken the support around 1.6930-40 area and felt if I stayed patient, price would come back.

Price did briefly dip lower but the key element to take away is the bullish pinbar off both the Senkou Span and the rising trendline. Exited for +25 pips.

Final trade of the night, GBPUSD. This pair has been relatively rangebound for the week with price respecting support/resistance levels very nicely and I saw no reason for this not to continue. Price struck 1.3030 which has been a great area of action over the last 24 hours as highlighted by the 15 minute chart:



Looking at the pip range chart, price made higher highs whilst the oscillator made lower highs to complete divergence and a good entry for a short pre news.



A good day with +62 pips in all.

Missed the best moves of the start of the UK session but currently long EURAUD.

As mentioned above, missed some good moves due to be slightly late in from work and i think mentally I was frustrated and perhaps wanted to find a trade too soon. I felt 1.4650 was a good area for a long given previous price action at this level but I entered on a weak divergence setup and went in too soon. This is where trade management is massively important and why I don't believe in fixed stops per trade.

I stuck with the trade for a number of reasons and one of them being the strong divergence on the hourly chart as seen below:



Another reason was the strong support at 1.4620 area as seen on the hourly chart also.

Looking at the pip range chart, had I waited the better entry would have appeared at 1.4625 area.

A strong reminder (again!) that there are always stronger setups and waiting is ultimately the strongest discipline to display. It ended up being a +27 pip trade but a lot more was learnt from the trade than just the result.

Currently long EURAUD from 1.4640.

wait for supp at 1.4600

I too had that in mind but given PA had/has stalled I was comfortable at 1.4640. Watching whether this is a mini false rise before a leg down or a genuine move to the upside.

Currently long GBPAUD, Nice supp. on daily now.
Here my best setup 500 tick chart.

a few minutes later. wow.

I try stay longer that one patern . Long GBPAUD

stoped out

GBPAUD got hammered yesterday, I ended bailing at breakeven on my EURAUD trade, will post the setup a little later.

Hopefully today will be a little more successful and some more setups.

Here's the setup I took and it looked great at the time, especially with price finding support consisitently also. However, when price failed to break the high of 1.4650 I wasn't willing to let it go any further and it was very late here.

Nothing today so far, been a little out of sync the last two days due to starting much later than usual. Back into routine from tomorrow and can hopefully find a suitable setup tonight.

Here's a video I made of a setup forming:

http://screencast.com/t/h3N5W9kn

sometimes I like a quick scalping technics, here der DAX a few minutes ago

Setup from today's first trade. A strong element of trust in my levels here as GBPUSD is hitting multi year lows which I have no reference to. However, I trust my cam levels implicility and given the strong setup I was happy to take the risk and hope for the reward.

Here is the reference to the cam level:



Looking at the pip range chart, price made lower lows whilst the AO made higher lows. +25 pips.



Keeping an eye on GBPAUD and EURAUD for a short.

As mentioned above, I was looking for an opportunity to short either EURAUD or GBPAUD. GBPAUD presented a better setup with price coming off the daily high almost to the pip and then price making higher highs whilst the AO made lower highs. Waited for a safe entry with price crossing the rising trendline and I aimed for the BRN and also coincided with the daily open level. +20 pips.