Rags To Riches V2

I'm not even excited that I'm getting these trades right, it's about what I do when I build my account up and again, I'm undefeated at blowing my account on one trade, don't ask me how or why because IDK LMAO.

Taking a quick break have to get the kids situated for school but we are getting good action.

This is a super easy explanation of Regular & Hidden Divergence

Some humor...

google advice:

So essentially, I keep doing the same thing over and over off of the same pattern I'm not really someone who sells a lot I buy 90% of the time

I asked chat GPT a question

Explain to me in simple terms how an OSMA and MACD correlate

ChatGPT said:

Here’s the simplest way to understand how MACD and OSMA relate:

Think of MACD as the “engine” … and OSMA as the “sound it makes.”

1. MACD = the main indicator

MACD is made of:

MACD Line = Fast EMA − Slow EMA

Signal Line = EMA of the MACD Line

Histogram = MACD Line − Signal Line

The histogram shows when the MACD Line crosses above or below the Signal Line (momentum changes).

2. OSMA = the MACD Histogram

OSMA stands for Oscillator of Moving Average.

OSMA = MACD Line − Signal Line

Which is the exact same thing as the MACD histogram.

So: If the MACD histogram goes up → OSMA goes up

If the MACD histogram goes down → OSMA goes down

If the histogram is above/below zero → OSMA is above/below zero

They move together because OSMA is literally the MACD histogram as a separate indicator.

3. In simple terms

MACD tells you the trend and momentum direction.

OSMA tells you how strong that momentum is (the difference between MACD and the signal line).

MACD = the car

OSMA = how loud the engine gets when you press the gas

More difference = more momentum (OSMA grows)

Less difference = momentum fading (OSMA shrinks)

4. Why traders use OSMA

Some traders prefer OSMA because:

It shows momentum strength more clearly

It’s easier to spot divergences

It reacts faster visually than reading the MACD lines

BACKTEST ITS THE WEEKEND, DRAW LINES EVERYTIME YOU SEE DIVERGENCE AND WATCH HOW THE ALGORITHM RESPONDS ESPECIALLY AT THE LOWS AND HIGHS OF THE DAY.

Something to keep an eye on

Light trading going on right now, I typically like to see the market moving a bit more before I trade, at least 70 pip movement for the day on most majors.

When the market is making new highs and lows it's always best to have an idea about the range for the day, if the market is making new lows and has only moved 40 pips, Hidden Divergence is what you're looking for. When a pair has hit its ADR is when you start to keep an eye out for regular divergence plays.

I was always afraid to scalp pairs with such a large spread...

For sure, if it's not under a pip I'm not touching it

If we can get another low, we might be in action, I have to head to work but I will be back on around 9am.

Possible set up for Bearish Hidden Divergence, I'm just not sold on the idea the GBPUSD is exhausted and making a turnaround right now, I could be wrong, but this is why I'm only looking for a certain type of set up

Keep an eye out, adjust trendline accordingly and be patient.

I'm not a person who will click on each time frame until I see what I want to see, this is pure divergence. Sometimes you may miss a trade but I rather that then get hit with drawdown because my entry was rushed

ufff...
Ill take brake, received some stuff from TRO, need to dive deep in pdf's

Those look like some nice trades

Bruh I’m really excited that you giving it a try, I appreciate you for trusting the process. If you have any questions always feel free to hit me up

Another example of divergence and the algorithm responding

Thank You very much, It will take me some time to get to the meat to ask right questions...
Your approach to divergency changed my view on this subject...
GL
BN