RSI Bollingers +divergence 15 Min | Forex Factory

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RSI Bollingers +divergence 15 Min

  • #1
  • First Post: Apr 4, 2009 11:58pm Apr 4, 2009 11:58pm
hi

this is an excellent trading system that consistently yields high pips.

tools: 15 MIN CHART, 30 MIN CHART,
BOLLINGERS (20,2) on price,
BOLLINGERS (20,2) on RSI (use 'first indicator's' data)
14 EMA
160 EMA
RSI (4 period)
GBPUSD pair

does not need S&R (intrinsic to system)

works with regular and hidden divergence.

step 1

spot a divergence. (bullish or bearish)

step 2 make sure the divergence is in the direction of the 14 EMA

step 3. open position when(as) the RSI crosses its CENTER BOLL. (the CENTER BOLL cross eliminates fakeouts.)

step 4 exit with 80% after first 2 candles.

step 5 close position (20%) when 14 EMA turns against your position.

thats it!. works like a charm.it tactics can be modified to 'only take divergences that go in the direction of the 14 EMA &160 EMA for further
security.
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll apr 3.gif Size: 22 KB
  • #2
  • Apr 5, 2009 3:51am Apr 5, 2009 3:51am
seem to be an interesting method
  • #3
  • Apr 5, 2009 7:33am Apr 5, 2009 7:33am
why do you need bollinger on price?
  • #4
  • Apr 5, 2009 8:12am Apr 5, 2009 8:12am
strictly speaking , the bollinger on price is not absolutely necessary but its there to provide potential S&R just in case.
  • #5
  • Apr 5, 2009 8:46am Apr 5, 2009 8:46am
I like this strategy!. I've never seen bollinger on rsi mentioned here before but have read about it in an article once. The win ratios tend to get better when done with rsi, as it's sort of a fluctuating S/R, within the rsi movement, then trade that using divergence, and as for my trading style, I'd probably enter part position on break of first candle, and the rest on break of center bollinger, (ma20)

Thanks for sharing, and please share some more chart examples

Regards,
Dan




Quoting hypnos63
strictly speaking , the bollinger on price is not absolutely necessary but its there to provide potential S&R just in case.
  • #6
  • Apr 5, 2009 8:55am Apr 5, 2009 8:55am
I trade something similar.......divergence is a right way to go,
but be advised that divergance by itself means nothing!!!
Bollingers can help...if you have a divergence at support or resistance,
that is good signal of price reversal!
The best possible situation is a double or triple divergance!

I coded this for personal use, it is deadly acurate, and it doesnt repaint.
It is showing divergence(both hidden&regular), based on macd & stoch!

Regards
Attached Image (click to enlarge)
Click to Enlarge Name: vs.gif Size: 34 KB
Attached File(s)
File Type: ex4 MACD&STOChOnChartDivergence.ex4   15 KB | 2,644 downloads
forexflash
  • #7
  • Apr 5, 2009 10:45am Apr 5, 2009 10:45am
can you explain the symbols on your chart please?

the green, orange and red pacman-like symbols?

the Center Boll on my system screens out the fake-outs as there are, as you say many divergence signals. we do not take them all. we take the ones confirmed by the RSI crossing its center Boll and the 14 EMA in favor. a further screen is that the both the 14 EMA and 16o EMA should favor the divergence and RSI center Boll cross.


i am aware of divergence signals and reversals at S&R but this is a simple, compact system that yields major pips for beginners.

peace

hypnos63
  • #8
  • Apr 5, 2009 11:02am Apr 5, 2009 11:02am
Quoting dbeach777
I like this strategy!. I've never seen bollinger on rsi mentioned here before but have read about it in an article once. The win ratios tend to get better when done with rsi, as it's sort of a fluctuating S/R, within the rsi movement, then trade that using divergence, and as for my trading style, I'd probably enter part position on break of first candle, and the rest on break of center bollinger, (ma20)

Thanks for sharing, and please share some more chart examples

Regards,
Dan
glad you like it. i have seen a lot of stragegies and a heard a lot of talk. people complicating things and making complex methodologies. they also work, but i like simple. thanks

here is another example from friday apr 3.

note i did not put in 'exitII' because in this case will wait for the 14 EMA to turn against the position before i exit with 20 %. i took 80% at exit 1.
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll 2 apr 3.gif Size: 19 KB
  • #9
  • Apr 5, 2009 11:26am Apr 5, 2009 11:26am
here are some more examples from thursday april 2.

note that i chose to let exit 2 wait until the the 14 EMA turns (which it really didn't until around 5am april 3. i exited all positions around mignight GMT.

which leads me to add, the trading hours for this system are 0600- 1700 GMT
these are the best times. it doesn't mean that it doesn't work after that, but i would advise staying within the suggested times.
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll 2 apr 2.gif Size: 22 KB
  • #10
  • Apr 5, 2009 12:37pm Apr 5, 2009 12:37pm
Hi FOREXflash!
Could you provide us a count bar like in your scalper ea? I think it would be good to follow strictly this strategy rule (close 80% exit 20%) and i have no idea where to find that.
Thank you!
  • #11
  • Apr 5, 2009 1:00pm Apr 5, 2009 1:00pm
Quoting Hyglater
Hi FOREXflash!
Could you provide us a count bar like in your scalper ea? I think it would be good to follow strictly this strategy rule (close 80% exit 20%) and i have no idea where to find that.
Thank you!

Is this your request!??
Attached File(s)
File Type: mq4 BarPercentage.mq4   1 KB | 1,438 downloads
forexflash
  • #12
  • Apr 5, 2009 1:15pm Apr 5, 2009 1:15pm
Quoting FOREXflash
Is this your request!??
Yes! Thank you!

hypnos63, Should i close 80% at what percentage(of time) of second/third candle?
  • #13
  • Apr 6, 2009 12:07am Apr 6, 2009 12:07am
Quoting dbeach777
I like this strategy!. I've never seen bollinger on rsi mentioned here before but have read about it in an article once. The win ratios tend to get better when done with rsi, as it's sort of a fluctuating S/R, within the rsi movement, then trade that using divergence, and as for my trading style, I'd probably enter part position on break of first candle, and the rest on break of center bollinger, (ma20)

Thanks for sharing, and please share some more chart examples

Regards,
Dan
hey don't forget to rate the thread.
  • #14
  • Apr 6, 2009 12:11am Apr 6, 2009 12:11am
Quoting Hyglater
Yes! Thank you!

hypnos63, Should i close 80% at what percentage(of time) of second/third candle?
you close 80 % when RSI recrosses its Center Boll. OR you close 80% after first 2 candles. this is up to your risk tolerance. either way you will win, its just a matter of how much stress you can tolerate. if you've never traded before, you can even close 80 % after the 1st candle until you are more comfortable with the method. the 20 % will ride the 14 EMA and that is a sweet ride.

peace

hypnos63
  • #15
  • Apr 6, 2009 12:14am Apr 6, 2009 12:14am
hi

i must further add that forex flash is not using the system i have outlined here.

my system is for newbies getting their feet wet in forex. respect to forex flash and other systems.

peace

hypnos63
  • #16
  • Apr 6, 2009 12:24am Apr 6, 2009 12:24am
here is a trade i entered today apr 6 2009. sunday night.

note that there was another bullish divergence i did not take. that was up to me.

with this system you do not have to chase after every single trade.

again also note that EXIT-2 20 % is running with the 14 EMA.

peace

hypnos63
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll apr 3.gif Size: 22 KB
  • #17
  • Apr 6, 2009 12:26am Apr 6, 2009 12:26am
the previous chart is already up. thids is the latest chart. oops.
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll 3apr 6.gif Size: 60 KB
  • #18
  • Apr 6, 2009 12:52am Apr 6, 2009 12:52am
guys,
how to add the bol into the indicator window?


first indicator data... got it...
  • #19
  • Apr 6, 2009 1:21am Apr 6, 2009 1:21am
EXIT 2 (20 %) was closed when 14 EMA crossed against my position
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll 4apr 6 close exit 2.gif Size: 25 KB
  • #20
  • Apr 6, 2009 1:29am Apr 6, 2009 1:29am
we have a potential bullish divergence forming,( see yellow lines)

but we will only take it if
a. the 14 EMA is in favor,
b. AND RSI crosses its CENTER BOLL in favor

this does not seem immediately likely so we wait for another set up.

hope this clarifies the strategy.

peace
Attached Image (click to enlarge)
Click to Enlarge Name: div rsi boll 5apr 6 potential bulll.gif Size: 25 KB
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