Hidden divergence

MACD on H4 is showing "Long RD":

Too early for me to make a decision based on the HD pattern. Let's wait and see.

Same here.

NZDCHF 4HR.

NZDUSD. HD pattern on 4HR.

GBPCAD
Watching..

EURGBP

Prefer a bullish Div to occur at second Weekly Support and also a double bottom.
Any bullish bias at the moment would be purely buying a correction on LTFs.
A bullish trend reversal on HTFs is too early to think of.
I wish if there was a bearish div to bank those 100 pips on the way to the second weekly support.
I will pass fo now and wait for a Daily PA.

Watching this pair

Lost 14 pips on this one. I used the Supertrend indicator for the stop loss as I found the last swing low too far from my entry. Looking for other opportunities.

Just to show the purpose of using a cost averaging approach. In my last trade, I could have waited for entries in the Trading Zone (lower rectangle) and then look at the 5 min chart. There was only one signal (upper rectangle) I could have taken for a few pips instead of a the loss.

Also, price action was on a daily resistance level with regular divergence on the daily chart - therefore a buy would have been risky

I had a few signs in my way and I thought there was still some room to go up.

USDJPY 4Hr and 2Hr

Hi mtharwat,

Here is another suggestion. Take all entries on the 30 min chart as long as the Trading Zone lasts.

Hi Chamane,

The only thing in my style of trading is that I tend to stay away from any indicator confirmation when I trade lower time frames (for entry) as they get lagging especially with MACD.
Saying this, I am still experimenting with your style of trading for confirmation on LTFS with MACD or any other indicators. I have no bias with or against but it is my head that is favouring PA on LTF after generating the signal from HTF including PA and divergence.

To tell more about how I am trading at the moment, it will deviate from the mainstream of this great thread you are actively making it live.

I usually look for PA patterns on HTFs including wedges, channels, broadening formations, S/R, etc.. (PA is very subjective and is not easy as traders think" ...but it is a different story.

Divergence is a confirmation tool.

BTW Chamane, I am currently experimenting Elders Impulse system on Multiple Time Frames across all pairs. I have an Excel sheet in which I pick the strong vs (weak or neutral) currencies to pick one or two pairs.

The way I use Elder Impulse is not the same as Elder suggested it. I tweaked it for the time being.

If the last weekly bar/Renko is bullish (green) or Neutral (Blue), I check daily bar/renko if it is Green or Blue as well. Then I trade on H4,H2,H1 etc.. based on PA, Divergence, Candles, Renko, etc..

I sometimes add all pairs for a certain currency (for ex: GBPCAD+GBPUSD+GBPJPY, etc..) to create a synthetic chart and check the weekly/daily bars/Candles with Elder Impulse and PA and divergence.

This new approach Iam developing is somehow consuming my head and deviating me at the moment from experimenting your style of confirming the entries on LTFs by using MACD confirmation. It is just MACD with its lagging confirmations on LTFs that makes me not happy with it. But I do not mind the confirmations from MACD (MACD/Sig cross or MACD/Zero Level cross) on HTFs. I have previously developed a strategy based on MACD, RSI, ADX on HTFs. The problem was some limitations from my end on testing the strategy fully in Excel. It is another story.

When I have something solid with my new approach, I will share with you.

In the meantime, I believe we are on the same track when it comes to HTF divergences. And I will follow your style of confirming the entry on LTFs with MACD Cross.

Thanks my friend.

Hi mtharwat,
I cannot blame you for not using the lagging MACD. I do use it, apart for its leading effect in divergence, in a context of multitimeframe analysis which greatly increases its effectiveness. And, above all, after checking all converging signs alerting the direction of price, including price action. In my last post, I was just giving a suggestion, the way I see trades now after months and months of trial and error. I will always be looking for improvement and posting in this thread will encourage, I hope, others to contribute, like you do. I wish you good luck in your journey and am looking forward to reading your findings.

GBPAUD

my day is done.

AUDCHF, H4:

Just subscribed, some really good stuff going on here

Both HD and RD on Daily. I think HD also on weekly TF