Another pair to watch.
Attached Image (click to enlarge)
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{quote} 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.
Exactly the same situation like on my screenshot HD #2:
Is not it?
- #3,083
- Feb 4, 2020 6:48am Feb 4, 2020 6:48am
- Joined Oct 2009 | Status: Trader | 1,023 Posts
Getting close to an entry point on the 4 HR TF. {image}
- #3,085
- Feb 4, 2020 10:19am Feb 4, 2020 10:19am
- Joined Oct 2009 | Status: Trader | 1,023 Posts
{quote} vitall, Your Trading Zone started when MACD crossed the zero line. I would look for entries on the 5 min chart, but you missed a few already. It is important to benefit from all entry opportunities especially the first ones. Personally, my TZ will start at the close of the candle in a few minutes on the 4HR chart. I will then look for entries on the 30 min TF. {image}
- #3,086
- Feb 4, 2020 4:07pm Feb 4, 2020 4:07pm
- Joined Jan 2009 | Status: Trader | 1,987 Posts
{quote} chamane, I see hidden divergence in your words. Here is the screenshot from your PDF: {image} Exactly the same situation like on my screenshot HD #2: {image} Is not it?
Not exactly. One of the things that I wanted to illustrate in my document is the difference in trading real time compared to backtesting with past data in the process of identifying the Hidden divergence pattern. The divergence starts developing as soon as the indicator diverges from price. At the yellow line in my picture, you clearly see a divergence (hidden), but the process is not over. Not even at the magenta line. We can clearly see that price crossed its previous high therefore invalidating the pattern (lime dotted line).
In your example, the first peak gave a good trading opportunity. After the MACD starts to diverge from price at the yellow line, I look at the next lower TF for entry signals. There was a nice move downwards. But that's it. I then look for the highs next to one another. Not two or three peaks ago like in your picture. You can see that in my picture the next peak did not diverge from MACD (yellow dotted lines). Hope my explanation is clear enough.
- #3,088
- Feb 5, 2020 1:49am Feb 5, 2020 1:49am
- Joined Oct 2009 | Status: Trader | 1,023 Posts
CADXJPY:
Last days- all about news-» technical things may not work...
Last days- all about news-» technical things may not work...
- #3,091
- Feb 5, 2020 10:15am Feb 5, 2020 10:15am
- Joined Oct 2009 | Status: Trader | 1,023 Posts
Entering a Trading Zone at the close of the 4 HR candle. Can then be traded on 30 min chart. {image}
