Cable, candles and divergence signals

hey thanks man, I see you're posting in EO's thread as well. Great job on the 100 pips, his method is excellent. The divergence I use is an added weapon to that strategy and it's never failed yet

Hey terje, cool you have a thread going. Need to start my own soon just for my own record keeping and study. On the stoch, I know it's 10/3/3 but do you have it set to Low/High & Simple?

Thanks and looking forward to watching your progress....

Hey albchr thanks for stopping in, I hope your trading's been going well.

I have stochs set to 10/3/3 simple / close. I don't see any other settings so I assume it's all standard otherwise. I've found them invaluable for revealing hidden turning points in the market and amazingly they've never failed on any time frame yet. Otherwise I'm using EO's method but not the 35/50 cross which I don't understand at all.

Hmmm...interesting. I can choose between Price field Low/High or Close/Close and MA method Simple, Exponential, Smoothed or Linear Weighted.

I have it set like you now and will watch it for a few days. Thanks Buddy! Should be interesting.

Chris

MA method is simple, I see what you mean about the rest now, it's under my "apply to" which I have set to "close". There are options for high, low, then a combination of H + L + C / 3 or 4 and other settings which I don't use. Just simple, close, 10/3/3 Hope it helps you! Any way to get an advantage on turns which is simple and clear is worth checking out

in total the divergence of yesteray on 1h and 4h has played out for 200 pips

15m negative divergence. Combined with the 1h resistance it was a clear trade

Sweeeet! Awesome little method when the 2 are combined thanks for pointing that out

Hi Terje

Great thread, I have been following eo's thread for a few weeks now. Found this thread through reading lazyboys posts.

I am not actively trading but do a lot of demo and paper trading, and am always looking for divergence when searching for equities to paper/demo trade.

So it is very interesting to see that it works well for you when day trading cable, which is where I seem to be focusing most of my time.

Keep up the good work.

blocp

hi blocp, welcome and please post any thoughts or charts as you come into them. I find there's usually 1 divergence play on the 15m each day, though often 2 or more if you trade long enough each day. I trade the London and US sessions and it doesn't matter when the divergence shows up, it always plays out at some point, just make sure your stop is in a good position below or above the nearest support/resistance wick.

The best divergence plays on lower time frames (5m, 15m, even 1h) occur when the higher time frames (1h, 4h, daily...) show supportive signals either through candle positioning, moving averages or trendlines and retracement levels. If you find a 15m divergence play with simultaneous signs of strength on a higher time frame then you can add more to your position (increase position size) than you normally would as you have a confluence of indicators in your favour which lowers the risk and allows you to push the envelope. It's situations like those (times of confluence) which are the most important to exploit as they offer a very high reward/low risk attempt. Load up on those and more times than not you'll be right and in the process amass a decent fortune. You can then allow the higher risk/lower reward plays to pass by. There's absolutely no need to trade 5 or 10 times a day if you can nail one or two good moves based on massed signals such as the ones mentioned. I think that that's what's meant by overtrading -- the smart traders load up on high probability trades and then allow questionable ones with a 1:1 r/r ratio to pass by. All the charts I post in this thread are attempts to show highly favourable reward-to-risk positions to exploit.

Hey man, just checking out the charts....im seeing divergence on day / hidden div on h4 and there was just divergence on h1 and we just had a nice 100 pip up move on cable, lets see if we get some more.

Will post charts up later bit busy at the moment bro.

clear 1h positive divergence last night. Longs would have been taken following the little harami at 1am BST

All i need to do now is never sleep then i can get them in the middle of the night

haha I was thinking the same thing

I've seen those divergence plays come into effect many times just after midnight/1am. Good for those long insomniac nights anwyay

yesterday we had 15m negative divergence right at the top 4h trendline around 16360

going to be interesting how the daily candle closes tonight because we have a possible positive divergence brewing. A harami or piercing line candle would most likely send it back up tomorrow and for a few days perhaps.

Yeah also divergence on the h4 and h1 at the lows, hope you caught the long there shame i was out and missed that, real peach of a set up. Got the short at london open tho, 15 min div and at resistance area on h4 and h1. Will try post a chart later on.

great job on the short this morning, I saw your post in EO's thread

I missed mostly everything except the London breakout around 11.45 BST and a small short and small long later on. Sitting on my hands for now...

this counts as positive divergence for me -- lower price, higher indicator, and bullish piercing line candle.

heres the h4 an h1 charts with divergence lines on, will post the 15 min entries separately later

very nice lb! What are your indicator settings? I compared to mine and you have a couple of signals which mine didn't show.