DislikedHi Alan, my biggest problem is that it rarely seems to be the first divergence signal that is successful and I end up getting chopped up before the inevitable one that works out.Ignored
We know a successful buy trade on any timeframe looks like the following Div->(hook?)->ema Cross->(hook?)->support->price HH->EMA HH. We also know that for a successfully 5m trade you have to have completed a number of successful 1m stages. This is the key idea behind this entry mechanic.
So what we can do is on the 1m chart (and at our 1h zoo spot) we wait for a div->ema cross->Hook. Then we quickly check our charts and see if the 5m is giving div then enter on the 1m Hook. The reasoning behind this is that we can see the buyers are interested before we commit. The 1m hook gives us a good entry (not the best entry and not the worst either). Without a 1m ema cross, most of the going to fail 5m divs are filtered out.
The con of this strategy is sometimes the 1m hook never comes and you never get a good entry anymore.