Hidden divergence

All the patterns are there, all the set up are there, this is when patience is going to pay off :_)

Hopefully anyways.

Considering the fact that the longer the accumulation the bigger the profit. I adjusted my profit target a bit bigger. Maybe I'm doing it wrong, but who knows. the odds is on my side I believe.

EU 5M. Retest. Time for a little bit PA analysis.

DXY set up for triangle break out. All the non US is supporting this fact.

Jobless Claim number just came out.



I am hoping to see a bearish candle pattern right here.

To support my analysis by looking at dxy. you can have a pretty much a good guess. If you guys know what I mean here.

Still a good candidate for a long entry.

Price bouncing off a trendline while a bullish Hidden Divergence pattern is developing on the Daily chart. At the same time, a bullish Regular Divergence is undergoing on the 4HR chart. Yet, there is no garanty that price will reverse upward. Let's wait and see.

A clear HD pattern developing on the Daily chart, but there seems to be a sideway channel on the 4 HR. If MACD crosses the zero line, I will switch to the 30 min chart for entry signals.

It's RD on H4:

This thread is dead. Give up guys

Very few opportunities on the 4HR charts last week, maybe two or three. I am used to more than that. Here are the ones that I spotted.

AUDCAD

A HD pattern on the 4HR Stochastic, start of a Trading Zone on the 1HR chart and 4 entries on the 5 min with no loss.

AUDNZD

Although there is an entry signal on the 1 HR MACD, there was no cross of trendlines to support it. No entry.

CHFJPY

A move of around 50 pips after the entry signal on the 1 HR chart.

Getting ready for next week, here are the HD patterns (using a 8-17-3 weighed MACD line) that are developing from the 4HR to the Monthly TF:

Currency Strength from Finviz.com.

Here is an insight on how I trade the HD pattern:

1. HD pattern spotted on the Weekly chart. Switching to the next lower timeframe.
2. Waiting for MACD to cross the zero line on the Daily TF. It just did, but I prefer to take entries on a timeframe 10 times lower (cost averaging approach).
3. On the 1 HR chart, I adapted the MACD settings to simulate a 2HR chart. A short entry signal is shown, but the candle closed the week. I will wait and see if there is any gap at the start of the week before doing anything.

A similar analysis applies here, but the entry signal is yet to be triggered on the 1HR chart.

Hi, I know this is very easy to find setup on old charts but I want to be sure that I good understand how You trade, chamane.
Your analysis looks great.

Hi Garrus,

You certainly got the idea, spotting a HD pattern on a chart and waiting for entries on a lower timeframe after a cross of a trendline and ultimately the cross of MACD. I use different settings on MACD that did not spot that particular situation, but the settings don't matter that much as long as you apply the same technique. Using your settings, here is my results on how I apporoach HD:

1. A clear HD pattern on the 4 HR chart. I then switch to the next lower TF, the 1 HR. 30 min would also be appropriate, but it gives less flexibility for a Cost Averaging approach.
2. On the 1HR chart, I wait for an entry signal, which is the cross of a trendline and MACD crossing the zero line. In our case, there is barely any clear trendline so I rely on the MACD for the signal. You can enter short at the MACD cross, but I prefer to use the Cost Averaging approach and switch to a timeframe around 10 times lower, in this case the 5 min chart. Doing so, the MACD signal is then the start of a Trading Zone (green rectangle). The zone will extend up till MACD crosses back the zero line.
3. On the 5 min chart, I wait for all MACD short entry signals. In our case there were four of them, all winners except the last one, using the last swing high as the stop loss level and aiming a RR=1:1.

This is typically how I approach the HD patterns. You can apply the same technique with Regular Divergence patterns and it works well. Hope this helps.

Hidden bullish m15 div on gbpjpy @13330 with stops below 13210

EDIT : its 13240 actually (right at the pivot)

HD pattern on the Daily chart. Long entry signal at the close of this 4HR candle. Despite the momentum and a bullish Regular Divergence pattern on the 4HR chart, we are still in a range zone, so I will wait for entry signals on the 30 min chart.

Thanks for comment and explanation chamane

Today I watched HD on 3 pairs but I didn't get good setups because the price went other way.

I was too focused on HD and didn't see RD ....There were a few wins.

CHFJPY HD: