Hidden divergence | Page 133 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Divergence and hidden Divergence 122 replies

Hidden Pending Order and Hidden Trailing Stop Ea pls 4 replies

It's All About Hidden Divergence: Follow the trend 2 replies

Hidden Divergence 7 replies

Hidden Technical on Usd/Jpy 15 replies

Attachments: Hidden divergence
Exit Attachments

Hidden divergence

  • #2,641
  • Nov 27, 2019 4:07am Nov 27, 2019 4:07am
Quoting CrocodileRex
{quote} stochs was not diverged for this. I read somewhere that you should only use one and not two indicators. In this case, macd diverged but the stochs didnt. If you want to use two indicators, i think it's best to take signals when both indicators diverge together. If not, just ditch one indicator and focus on it only.
I prefer having the two indicators diverging together. I am showing two cases where it happens. With GBPJPY, there would have been a gain if entering after the cross of the trendline and a small loss if entering on the MACD signal. With CHFJPY, there was a small loss in both cases. As in all methods, it doesn't work out perfectly, but with good money management, it will be profitable in the long run.
Attached Image (click to enlarge)
Click to Enlarge Name: Divergence.png Size: 52 KB
  • #2,642
  • Nov 27, 2019 9:16pm Nov 27, 2019 9:16pm
Quoting chamane
{quote} I prefer having the two indicators diverging together. I am showing two cases where it happens. With GBPJPY, there would have been a gain if entering after the cross of the trendline and a small loss if entering on the MACD signal. With CHFJPY, there was a small loss in both cases. As in all methods, it doesn't work out perfectly, but with good money management, it will be profitable in the long run. {image}
Yes, that's what i am trying to say. In your euro example, only one indicator was showing divergence and you took it. It was a good trade but if it didnt work out, you can't analyze what is wrong because you have two indicators there and only one of them diverged while the other didnt. Was it stochs fault or was it macd? You will never know. Unless of course you put up a spreadsheet and put two sets of data in it but i doubt many will do that.

What i am trying to say is it's better to focus on only one indicator. In that way, you will know what win percentage you have with say, only macd and what percentage you have with only stochs.

But that's just my own opinion, if using two indicators work very well for you, i can't see the reason not to continue.
  • #2,643
  • Nov 28, 2019 6:31pm Nov 28, 2019 6:31pm
One pair to watch. HD pattern on the Daily TF.
Attached Image (click to enlarge)
Click to Enlarge Name: Divergence.png Size: 38 KB
  • #2,644
  • Nov 28, 2019 6:57pm Nov 28, 2019 6:57pm
This one is also worth watching.
Attached Image (click to enlarge)
Click to Enlarge Name: Divergence.png Size: 37 KB
  • #2,645
  • Nov 28, 2019 7:33pm Nov 28, 2019 7:33pm
I also watch Regular Divergence patterns as I apply the same analysis tools. Here is an example: RD on the Monthly chart and potential entry point on the Weekly.
Attached Image (click to enlarge)
Click to Enlarge Name: Divergence.png Size: 38 KB


But I prefer HD patterns.
  • #2,646
  • Nov 28, 2019 7:46pm Nov 28, 2019 7:46pm
Chamane what is your win rate using solely hidden divergence and why did you switch from TDI to stoch?

Thx!
Life Is Good
  • #2,647
  • Nov 28, 2019 8:04pm Nov 28, 2019 8:04pm
Quoting cowcool
Chamane what is your win rate using solely hidden divergence and why did you switch from TDI to stoch? Thx!
The winning rate will depend a lot on how you manage your trades. If you use a RR=1:1, I would say between 66% and 75%. I remember using TDI, but I prefer the Stochastic and the MACD, I find that they give smoother moves. But you can be successful with spotting divergences with TDI.
  • #2,648
  • Nov 28, 2019 8:06pm Nov 28, 2019 8:06pm
any particular reason of why you apply 8,3,5 to stoch? it seems lagging
Life Is Good
  • #2,649
  • Nov 28, 2019 8:11pm Nov 28, 2019 8:11pm
Looks like another entry opportunity building up. We'll see in a few days.
Attached Image (click to enlarge)
Click to Enlarge Name: Divergence.png Size: 39 KB
  • #2,650
  • Nov 28, 2019 8:17pm Nov 28, 2019 8:17pm
Is this a hidden divergence?peak top peak distance is too long
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 78 KB
Life Is Good
  • #2,651
  • Nov 28, 2019 8:19pm Nov 28, 2019 8:19pm
and how about this, is this the correct way to draw hidden divergence?sorry for my noob question
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 85 KB
Life Is Good
  • #2,652
  • Nov 28, 2019 8:34pm Nov 28, 2019 8:34pm
Quoting cowcool
any particular reason of why you apply 8,3,5 to stoch? it seems lagging
It's a personal preference. I find that the setting of 8 gives moves that are in sync with those of the MACD histogram with a setting of 8,17,9. When both show a divergence pattern at the same time, it is a strong signal. I agree that the Stochastic laggs as do probably all oscillators, but not if used to spot divergence. Georges Lane used a 5 period Stochastic (see attached document), but an 8 period gives good results as it is not the only signal I use for a trade. I use Fib numbers, the cross of trendlines and MACD on lower timeframes among others. I have seen many traders using a 14 period Stochastic for divergence trading, but I prefer a shorter setting.
Attached File(s)
File Type: pdf Lane-Stochastics.pdf   53 KB | 3,997 downloads
  • #2,653
  • Nov 28, 2019 8:40pm Nov 28, 2019 8:40pm
is this is a hidden divergence? I dont know if i connect the right peak

Thx
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 76 KB
Life Is Good
  • #2,654
  • Nov 28, 2019 8:49pm Nov 28, 2019 8:49pm
Quoting cowcool
is this is a hidden divergence? I dont know if i connect the right peak Thx {image}
I notice some wait for their fast line to cross either 80 or 20, some don't. Divergence is all I trade. Great pics, but very busy at the same time. Happy trading to all.
  • #2,655
  • Nov 28, 2019 8:50pm Nov 28, 2019 8:50pm
Quoting cowcool
Is this a hidden divergence?peak top peak distance is too long {image}
Correct, when I use a setting of 8 for the Stochastic, the distance between peaks should be from 8 to 16-20 periods on average.
  • #2,656
  • Nov 28, 2019 8:52pm Nov 28, 2019 8:52pm
Quoting cowcool
and how about this, is this the correct way to draw hidden divergence?sorry for my noob question {image}
There is a spike (or noise) between your peaks. I don't trade those usually.
  • #2,657
  • Nov 28, 2019 8:55pm Nov 28, 2019 8:55pm
Greetings traders, does anyone besides me use fractals?
  • #2,658
  • Nov 28, 2019 8:55pm Nov 28, 2019 8:55pm
Quoting cowcool
is this is a hidden divergence? I dont know if i connect the right peak Thx {image}
Yes, this is more like the ones I watch for entries.
  • #2,659
  • Nov 29, 2019 12:55am Nov 29, 2019 12:55am
AUDUSD showing a HD. Enjoy.
Attached Image (click to enlarge)
Click to Enlarge Name: audusd-h1-oanda-division1-2.png Size: 121 KB
  • #2,660
  • Nov 29, 2019 3:06am Nov 29, 2019 3:06am
Quoting melloyello
Greetings traders, does anyone besides me use fractals?
Hi melloyello, which do you mean fractal indicator or fractal pattern?
0 traders viewing now