Two systems in one - Very simple divergence strategy

Hello everyone,
I am new to this forum and I want to share the system that i am developing with the sole intention of exchanging ideas and listening to your contributions.

Like many of you I have spent years trying to achieve stability and consistency trading the forex market and like many of you I have blown up several accounts before I could reach balance, emotional and financial.

My system is very simple, so simple it's boring, but I've seen over time that growing an account is a slow and boring process but it's worth it
*Remember it is still in development


1. Counter Trend

Indicator
AO (Awesome Oscilator)
Heiken Ashi

Rules Short/Long

1. Wait for a long trend move
2. AO indicator - Wait for 3 small mountains to form in the opposite direction of the trend, "They should be very obvious and easy to identify - Divergence"
3. Open a trade with the first Heiken Ashi candle in the opposite direction of the trend

*I have only tested the system in eurusd, usdjpy and sp500 / 1-2 minute chart
**Remember to use the appropriate risk/reward all the time

Clue
A. If the three small mountains on the AO indicator don't cross the 0 line, the pullback is probably not that strong, so the target should be small.
B. If there is a crossing of the 0 line on the AO indicator, it is likely that the retracement will be stronger or even become a new change in trend.

Avoid
* Trading before or during big news
* Counter-trend signals just after breaking an important support or resistance (Wait for it to get far enough away)
* Market with low volume or close to closing

2. With de Trend

Indicator
AO (Awesome Oscilator)
Heiken Ashi

Rules Short/Long

1. Identify the trend
2. Price make a BOS (Break Of Structure)
3. Wait for the pullback
4. AO indicator - After the pullback, wait for 2 small mountains to form in the direction of the trend, "They should be very obvious and easy to identify - Micro_Divergence"
5. Open a trade with the first Heiken Ashi candle in the direction of the trend

*I have only tested the system in eurusd, usdjpy and sp500 / 1-2 minute chart
**Remember to use the appropriate risk/reward all the time

Clue
A. If the two small mountains on the AO indicator don't cross the 0 line, the impulse is probably not that strong, so the target should be small.
B. If there is a crossing of the 0 line on the AO indicator, it is likely that the impulse will be stronger.

Avoid
* Trading before or during big news
* Counter-trend signals near to an important support or resistance
* Market with low volume or close to closing

Two systems in one - Very simple divergence strategy - Template

Im on the board when Divergance trading is talking about, good luck!

What TF you usually trading with this ?

my contributions.
you can try adding the following 2 items to your arsenal.

1. hidden divergence (in addition to regular divergence)
hd mainly for trend continuation and rd mainly for reversal.

2. draw trend line on AO and wait for it to close above/below 0 line.

stated in post 2.

Hi Inthebox!
I dont see this earlier In my age eyes are not so good thanks!

Yes, HD is better like regular, usually give better results, for me for example! Cheers!

I do not add nothing more, is simple like he is and this is beautiful, only trade forwardtesting and stick with the rules, profit will come!

spread too high.

ao trend lines and horizontal lines can also be used for trade exit if target is not set.

ETH/USD waiting for Heikin ashi colour change

Wait for nr 3

Better no trading today guys. Bank holidays all over the place. Your broker will love it when u trade with those spreads and low volumes.

Hello @inthebox
The analysis that you show is very interesting.
I would like to try it and see how easy it is to identify when the HD appears on the chart

What timeframe do you recommend?

depends on what type of trader you are.
generally for day trader and scalper good to follow the trend first.
1. h1 or h4 AO above/below 0 line.
2. then the lower time frames (m30 to m1) for divergences around support/resistance
trying for 10 - 30 pips or targeting the next one or two support/resistance away.

h1 ao above zero. h4 ao blue.
m1 ao hidden divergence.
reached 5apr high.

when price reached a resistance, stop trading and watch what it is doing there.
see, it is now ranging. see whether will break upward of range.
if it breaks down, forget about it since the trend is going up.

gbpjpy had broke below range to grab liquidity as there are sell stops there for those who bought earlier.
see whether will go back into range for divergence during frankfurt/london session.