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Hidden divergence

  • #3,061
  • Feb 2, 2020 7:30am Feb 2, 2020 7:30am
Quoting vitall
By the way: we are still in the TZ here: {image}
vitall,

If I'm not mistaken, the shortest timeframe showing a recent HD pattern with NZDUSD is the Weekly chart. The Trading Zone started on the Daily and there were 2 entry points so far on the 2 HR chart following a Cost averaging approach.
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But yes, it is a Trading Zone on your chart. There is one each time you get a signal from an indicator, as long as you drill down to an 8-12 times lower timeframe to enter trades even if there is no divergence pattern. In your case, I would go and see for entries on the 30 min chart. IMO, HD patterns give a strong edge and raise the probability of success.
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  • #3,062
  • Feb 2, 2020 7:58am Feb 2, 2020 7:58am
Start of a Trading Zone this week on the Weekly TF. Will be following entry points on the 16 HR TF.
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  • #3,063
  • Feb 2, 2020 10:11am Feb 2, 2020 10:11am
Quoting chamane
{quote} vitall, If I'm not mistaken, the shortest timeframe showing a recent HD pattern with NZDUSD is the Weekly chart. The Trading Zone started on the Daily and there were 2 entry points so far on the 2 HR chart following a Cost averaging approach. {image} But yes, it is a Trading Zone on your chart. There is one each time you get a signal from an indicator, as long as you drill down to an 8-12 times lower timeframe to enter trades even if there is no divergence pattern. In your case, I would go and see for entries on the 30 min chart. IMO, HD...
You are right, chamane: TZ starts on D1:
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  • #3,064
  • Feb 2, 2020 7:02pm Feb 2, 2020 7:02pm
We'Mll know pretty soon if price will continue up, but there is a strong selling pressure.
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  • #3,065
  • Feb 3, 2020 3:10am Feb 3, 2020 3:10am
EURUSD:
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  • #3,066
  • Feb 3, 2020 4:53am Feb 3, 2020 4:53am
HD + RD:
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  • #3,067
  • Feb 3, 2020 12:17pm Feb 3, 2020 12:17pm
USDCHF:
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  • #3,068
  • Feb 3, 2020 12:26pm Feb 3, 2020 12:26pm
USDJPY:
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  • #3,069
  • Feb 3, 2020 4:38pm Feb 3, 2020 4:38pm
Quoting IvanovSoft
{quote} Thanks! That is what I looked for. Now I am taking challenge to code this approach myself, because it is the best way for me to check any strategy.
Well, actually I have implemented tool to backtest your strategy. If shortly, then as I expected win/loss ratio usually a bit less than 50%.
I am preparing tool for publishing, so everyone can try it. Couple screenshots for now:
1. Detect HD on Daily chart
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2. And enter on M15 chart (white label after broke trend line and having MACD below 0 level) with closing by SL
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  • #3,070
  • Edited 7:00pm Feb 3, 2020 6:38pm | Edited 7:00pm
Just a small scalp during Asian session

Edit = how do I post pics in my post? Tried uploading to imgur then copy/paste bb code but it didn't work... Never mind I figured it out

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  • #3,071
  • Edited 10:14pm Feb 3, 2020 9:31pm | Edited 10:14pm
I closed the trade for a few pips profit. Didn't reach TP but at least it was in profit.
  • #3,072
  • Feb 3, 2020 10:15pm Feb 3, 2020 10:15pm
1HR EUR/GBP divergence and double top

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  • #3,073
  • Feb 4, 2020 2:56am Feb 4, 2020 2:56am
EURUSD: we are not far from TZ:
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  • #3,074
  • Feb 4, 2020 3:11am Feb 4, 2020 3:11am
Quoting IvanovSoft
{quote} Well, actually I have implemented tool to backtest your strategy. If shortly, then as I expected win/loss ratio usually a bit less than 50%. I am preparing tool for publishing, so everyone can try it. Couple screenshots for now: 1. Detect HD on Daily chart {image} 2. And enter on M15 chart (white label after broke trend line and having MACD below 0 level) with closing by SL {image}
IvanovSoft, HD is a pattern. Sometimes it's tradable, sometimes- not. Even if it looks "HD" trader may not to take the trade based on it.
On your D1 chart I would not consider to watch for HD#2 and HD #3 (it's not HD by the way). #1 was good; #4- we will see
  • #3,075
  • Feb 4, 2020 6:29am Feb 4, 2020 6:29am
Quoting vitall
{quote} I would not consider to watch for HD#2 and HD #3 (it's not HD by the way)
Could you explain why #2 and #3 are not HD from your point of view?
  • #3,076
  • Feb 4, 2020 6:38am Feb 4, 2020 6:38am
@chamane, are #2 and #3 HD from your point of view?
  • #3,077
  • Feb 4, 2020 6:46am Feb 4, 2020 6:46am
Getting close to an entry point on the 4 HR TF.
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  • #3,078
  • Feb 4, 2020 6:57am Feb 4, 2020 6:57am
[quote=IvanovSoft;12736736]{quote} Could you explain why #2 and #3 are not HD from your point of view?[/quote
I think that in case of #2 market is trending up in strong way. Check out post 3068: weak rebound candles give me the hint that bulls are weak- good sign for HD trading
#3-» looks like Double top formation.
  • #3,079
  • Feb 4, 2020 6:58am Feb 4, 2020 6:58am
Quoting IvanovSoft
{quote} Could you explain why #2 and #3 are not HD from your point of view?
IvanovSoft,

I prefer working from one peak to the next. In your example, #1 was a HD pattern to me, but #2 and #3 were not. I gage myself with the number of candles between peaks that should match or be close to the settings of my indicators. For instance, if I use an 8 period Stochastic, having 25 or 30 candle distances like in #2 and #3 is too high.
  • #3,080
  • Feb 4, 2020 7:00am Feb 4, 2020 7:00am
Quoting IvanovSoft
{quote} Could you explain why #2 and #3 are not HD from your point of view?
To be able to decide if there is an HD, you need to first describe what swing high/low is. Some will accept #2 and #3 as swing highs, some not which means this kind of trading involves discretion, therefore you cannot backtest it with an EA. Just my two cents.

Regards,
Blackeagle
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