Divergences - (All Pairs)

have you given up on this thread ? This could be a good thread if it can stay current and active.

Here is a daily chart of euro/usd for discussion. The chart shows two divergences. note that the white lines on price are drawn from close to close because stochs are based on close . The first divergence yielded a fall back to support at 1.5600 area-stochs held above 50 level -a pin bar formed-both bullish-next day was a inside day -if you had bought a break of the pin obvious target was a retest of the highs. Price pushed briefly thru resistance at 1.6000 area then fell back. formed a pin bar then tested support at1.5800. stochs show divergence but are still above 50 level. Friday ended up being a inside day. hourly chart shows consolidation basically from wednesday around 12:00 noon untill friday's close.
If you want to trade the divergence, you can sell a break of 1.5780,which is about 20 pips above the 38.2 retracement level., with a target of 1.5600 which is close to the 68.2 level.
Or, you can buy a break above 1.5900 targeting a retest of the high or even a 138.2 extension which comes in around 1.6300 area.

any thoughts"?

I have never known that u can draw the MACD line like this.Please keep it up

Hey emda,
Weekly aussie chart, note the pin and macd divergence...lets see whether the pin triggers...

very interesting razldazl and c-note

I'm not giving up the thread... I've been very busy this week setting up the servers to trade and from tomorrow I'll be on holidays until august 10th. After that I'll see also how could we automate or define a system for divergences.

many pips to all of you.

Im now try to test goen MACD indicator for DIV here a picture no different in this picture but will forward test.Goen MACD is without fast EMA I guess.But will open trade when TL breakout.

Hi guys,
Check this out..


updated version stochastic divergence multitimeframe. When u change timeframe, it zoomed.
http://rapidshare.com/files/13136808...ivmtf.zip.html

you will need #MTF_Stochastic_v2.1 for this indicator. Copy both at indicator folder attach only divergence indi.

Maybe it wont help much, add indicator collection only .

THe ej still nt breaking TL here another one on UJ

the TL breakout short post take.

boy did it break!!! its times like this i wish i had a real account runnin!!

Hello everybody
I'm back from holidays
It has been one of the best holidays ever... even having been robbed 6000 euros in the street and in the middle of the day...
I'm just watching what the currencies are doing.. and it seems we are going to see extreme volatility as in last august ! It is going to be interesting.
see you on monday!

hi emda,

nice to read your thead! i can't stopping myself from posting my 1st reply here to suggest a trading log for divergence signal. do you think it a good way to trace back and help more people look into it?

Hi all,
I would love to see more examples of hidden divergence if you see any in realtime...thanks, Raz

Hi everyone, there is a bearish divergence on the USD/JPY i believe this will fetch us not less than 150 pips from the present price of 110.60 at this time 12.00 gmt noon

hi,
could you post a chart it would be very helpful thanks, Raz

Are we seeing UJ Bearish divergence in D1 TF???
I will be cautious for LONG now...and wait for SHORT confirmation too...

sonic

http://i34.tinypic.com/5zei1.jpg

I'm no longer trade divergence but I think it's showing a bullish hidden divergence.......kinda "trend continuation" signal

My trading system/methodology incorporates divergence both regular and hidden/reverse as an essential component of a confluence of technical conditions that may present themselves at a pre-identified levels/areas of potential support/resistance, confirmed by price action itself, that then constitutes a repeatable high probability set-up to enter the market.

Divergence on it's own beit regular or hidden/reverse is not necessarilly high in probability as a stand alone signal to enter the market. It is better taken as part of a confluence of reasons to enter the market.

If re-entering a trend on a hidden/reverse divergence, do so into a trend that exists on at least the next 2 time frames (the trend t/f (s) ) up from the chart that the hidden/reverse divergence presents itself on (the intermediate t/f,) and then drop down a time frame to find regular divergence or extreme readings in the oscillators to time your entry, (the trigger t/f) confirmed by price action itself. Of course the probability of a successful trade of this nature over any given sample is enhanced if you take entries that occur in this way at a pre-identified area of support/resistance and in this case where a previous now broken level/area of support in a downtrend is being re-tested from the underside following a pullback in the trend and that level/area now may act as resistance (SBR) -or- a previous now broken level of resistance in an uptrend is being re-tested from the top side following a pullback in the trend and that level/area may now act as support (RBS.) These are the areas at which you should look for hidden/reverse divergence on your intermediate t/f, with entry timed on your trigger, that may give you a high probability entry to the trend that you ahve identified that exists on the higher (trend) time frame (s.) Where no identifiable sbr/rbs exists it may be that you look to fib retraces, and of of course where these fibs co-exist with areas of sbr/rbs, so much the better.

In the case of regular/divergence, this can alert us to a change in trend/pullback/extended pullback and the more times frames that this exists on at a pre-identified area of support or resistance suggest the deeper the pullback may be/even an out and out trend reversal. It may be that you see regular divergence on some times frames and oscillator extreme readings on others and this too is a high priobability trading signal at pre-identified support/resistance.

One further word about diveregence, ...it is best to identify patterns that your chosen oscilator (s) make on the settings you have adopted,.. in respect of both regular and hidden/reverse divergence and to see if these repeat at these s/r/sbr/rbs areas.

Hi guys,

I need your opinion on GJ. Here is how I am reading the chart:
1.We are currently on the retracement from the recent drop from around 215 to 202.5.
2. The retracement is moving in a flag.
3. The flag is approaching 207 which around the 38.2 Fibo.
4. I can see a bearish divergence on the 30M chart formed over the past 2 trading days.

I will be looking to go short on the break out of the flag to the downside.

Any Ideas?

Hi sonic personally I think its not a golden DIV.To enter it is recommended to trade DIV on OB or OS area only.