{quote} Hi, I once firstly looked at the MACD cross of the zero line and confirm if there is a HD pattern on the larger TF, but I came back to look firstly for a HD pattern and switch to a lower TF for entries. Then I look for regular divergence, the MACD cross of the zero line and trendline break. Both ways can be done, but I prefer the latter. I scan all pairs that way and some other instruments like Gold and Silver. So I look for a HD pattern on mostly Monthly, Weekly, Daily and 4hr charts and enter trades on a shorter TF when I see one. If I...
. For a 30m entry, the HD would be on the 4H TF ?. Like this:{quote} Very clear explanation
Here is an example of a hidden divergence pattern forming on the 1HR chart. I would then observe what is going on on the 15 min chart, waiting for criteria to be met (regular divergence, MACD crossing the zero line and price breaking the trendline). Patience is required as price could turn the other way. Note that the trend is clear on the 1HR chart, which is ideal. {image}
{quote} Here is how went the trade. It is important to show what doesn't work as well. There was a HD pattern on the 1HR chart, then we switch to the 15 min. We saw a regular divergence pattern, price broke a trendline down and MACD crossed the zero line downward for a signal to enter. But then price decided to turn around in the upward direction. At that time, I get out when MACD crosses back the zero line for a small loss. It often happens before the stop loss gets hit at the last swing, thus minimizing the loss. Also, there migth have been a...
{quote} Everyone loves to post their wins but a lot hide or give very little attention to losses, which could have valuable information to improve our trading. I like your review
{quote} You are right, it should be taken into consideration as the other signs I am using to confirm a trade. I rely more on the HD pattern on the higher timeframe wich is normally a stronger sign, in the direction of the trend. Furthermore, there was a regular divergence downward after the one you are pointing out and for me, it is enough to be comfortable entering the trade. It didn't work out, so it's important to minimize the loss in that case. Looking at the lower TF is only a method to pinpoint the entry.
