I can go on and on to show other examples but I think you will get the hang of it once you try it in your charts.
In the meantime I will continue to look at other pairs and also polish this strategy and see if different results will be derived.
If you have any question, please feel free to ask.
Another example on EURJPY :
You can see in order to avoid risks you could have exited all trades at point number 1. However, confirmation from RSIOMA came later at 2 (bigger profits)
AUDUSD is forming some MD on H1 now.
Waiting for it to unfold.
RSIOMA in overbought
First TP on 50% fibo ret which is the previous bottom support
Waiting for AA to confirm exit.
AUDUSD results:
3 trading points: the first with +60pips, the second with around +250 pips and the third around +300pips.
You see that AA signal happened around 23% fibo ret. Also RSIOMA under 20-30%, all of which shows our exit point.
Also you can see the same results in EURUSD.
The circles are entry points, the yellow vertical line is the exit which is confirmed by AA trend (down bottom rectangle), also 38% of fibo ret and RSIOMA in 20-30%.
Hi Saoshyant, Thanks. I still use the standard MACD & RSI settings. However, would like to the way your system works in terms of positive expectancy that it produces. Would you be able to share your setup (entry, SL & TP) after the trade with outcome?
{quote} Hi Saoshyant, Thanks. I still use the standard MACD & RSI settings. However, would like to the way your system works in terms of positive expectancy that it produces. Would you be able to share your setup (entry, SL & TP) after the trade with outcome?
Ignored
Dear "rmchokku",
First of all you should determine the trend direction, specially in different time frames. In this strategy, you will need to do this on H1 and H4 to be able to trade on M30 or M15.
You need to draw support and resistant lines as well, using trend itself, fibo ret. from previous tops and bottoms and also channels.
Then you will want to do the same for at least 5 to 10 other pairs, none of which should have CHF, and wait in M15.
You should be like an eagle, hunting opportunities but don't rush in trades.
When you see a normal divergence, wait for the reversal candlestick patterns, like morning star. It is best placed when near the 113% or 127%of previous trend.
Then enter with the minimum lot size which I explained earlier in the previous posts. it depends on your monetary/risk management.
For the first trade, I would not put an SL right away, because we are actually looking for MULTI DIVERGENCE to form.
The TP should be put based on fibonacci ret. levels, combined with support or resistant levels. You need to put them before the support/resistant lines.
As you know fibonacci ret. levels are some kind of support/resistant lines themselves, so take them seriously.
If our plan didn't work out and the price went and made a new divergence, it still is fine. Just wait for the right reversal candlestick pattern and combine it with 113%-127% of fibo ret. and enter the second trade.
Put all TP at the same level.
When you see a third or forth divergence and you entered trades again, this is usually the time to consider SLs.
Usually such movement continues until the next resistant or support line, to form the final divergence. In this case put all SLs behind this line.
The exact exit point might not be the TP. TP is the initial prediction that we have, but the exact exit point is signaled by Advanced ADX and RSIOMA. ( I am a fan of default RSI myself, but I strongly suggest using these two as well. They are magical believe me!)
I posted on other threads to see if someone can code this for me to combine both signals from these two into an alarm system, in order to avoid constant monitoring of the market. No luck so far though...
But until then, I will be posting new updates and examples and try to polish this strategy.
P.S: By now I am assuming everyone who is reading this thread is proficient in trend direction, support and resistant lines, channels, different patterns both by price and Japaneses candlesticks, Fibonacci retracement, Fibonacci expansion, has all important Fibonacci levels and so on...
{quote} Dear "rmchokku", First of all you should determine the trend direction, specially in different time frames. In this strategy, you will need to do this on H1 and H4 to be able to trade on M30 or M15. You need to draw support and resistant lines as well, using trend itself, fibo ret. from previous tops and bottoms and also channels. Then you will want to do the same for at least 5 to 10 other pairs, none of which should have CHF, and wait in M15. You should be like an eagle, hunting opportunities but don't rush in trades. When you see a normal...
Hi Saoshyant,
I encountered another multiple divergence scenario in USD/CAD. I took this trade yesterday and got stopped. I've taken one today too. Price didn't heed to the divergence despite occuring in H1, M30 since 19th June. How are your indicators filtering this out? How are your indicators filtering divergence if price "walks the bollinger band" or moves outside of 10 Moving Average?
My other assumptions are fundamental (Trade war, OPEC meeting) for price not heeding to divergence.
