Destroy Markets With Convergence and Divergence

Hello everyone. Big Phil back with a simple strategy to trade almost any market. My goto strategy has always been my edited TMS system, but I always look for high probability trading systems to share and allow me some extra trading opportunities strictly because my edited TMS system is a waiting game . Here we are using heiken ashi candles with the TDI and only use an RSI period of 13 and fast MA of 14. We use trendlines and horizontal levels on the TDI to determine a trade area and heiken ashi size and color change to enter(We are NOT using candle levels). We enter only on small or medium sized candles(to prevent large swings). We use a trailing stop of 1 to 1 from entry. Stop loss is determined by 1 very large heiken candle above or below our level or 2 medium sized candles. Our stop loss level is near the previous high or low. There is no set stop loss level manually because wicks do not matter on the heiken candles. The body breaking those levels is what matters.

We look to profit 2 to 1 but no set take profit is set either. Candle color and ranging candles or color change tells you when to exit with profit. Your eyes will learn to pick up good take profit levels from support and resistance or trending candles. There will be many times you can lock in 3, 4, or 5 to one because of the candle size being small and not too far from our stop level. You have to monitor these trades differently depending on your timeframe.

Depending on the instrument you are trading, look back in the history to determine if that instrument is following convergence and divergence at a higher probability and also if the instrument has nice swings in your favor off those levels.

And for the main entries you have to wait for price to come to that convergence/divergence level and look for the small or medium color change candle. Simple entries off trendlines and horizontal levels. Stand by for the screenshots while I redownload my screenshot software within the hour so I can show you proper stop outs and entries.

Tradeable areas. Notice the stop loss levels. We need the heiken body to break above the wicks to be stopped out.

There are more trades on that chart. This is a quick reference. Simply drawing trendlines on all the angles to add more trade areas, but you need the color change to happen and a small to medium candle.

Massive profit

Great sell trade CURRENTLY on EurUSD. Lets see how the market opens.

And as I said before, you all have to notice patterns on different instruments from the history. Look to see if converg/diverg is being followed in your favor. Sometimes you will notice some instruments follow it but usually make a higher high or low before following it. That's more advanced and I am trying to keep it simple for everyone.

Hi Phil,
Good work. Usually the C&D works quite well with the AO indicator and on higher timeframe with price moving higher high and AO making lower low tops.
Can you please explain bit more detail about the entry criteria of using C&D with TDI?
Is there a MT4 TDI indicator to be used and dashboard indicator if possible please?
Thanks

Hi
I don't see RSI and MAs as stated on post #1.
convergence & divergence to what?

Shamnonu, the entry is simply waiting for the main levels of the TDI swing highs, lows, and ranges and to get a small to medium opposite colors at that level. You can notice these levels easily with your eyes because of the smoothed round edges. Place trendlines and horizontal levels at these key swing areas. If price comes to that level and continues with the same candle colorr and breaks well above or below you know price is not reversing. The key is to have the candle color change as quick as possible at that level and be a small to medium sized candle. Noticing the candle size is just looking at the charts to determine large vs small vs medium. That should be fairly easy to learn by looking at the history or candles. Usually to have a good entry candle color changes fairly quickly or not many candles after. Sideways price movement of small candles may give you a bit more time to enter.