Divergence Trading | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Divergence trading 86 replies

Divergence and hidden Divergence 122 replies

Which is more profitable: Trend or Divergence trading? 22 replies

Divergence trading 10 replies

Trading Divergence 23 replies

Attachments: Divergence Trading
Exit Attachments

Divergence Trading

  • #1
  • First Post: Sep 14, 2009 12:00pm Sep 14, 2009 12:00pm
Hi

I decided to open this topic for divergence Trading and discussion
about this analysis

All pairs and time frame

Best Regards
  • #2
  • Edited 3:44pm Sep 14, 2009 12:01pm | Edited 3:44pm
All of you know all kind of divergence but i want let me to
post a short introduce about types of divergence.

""you can find more and complete post about type of divergence and divegence trading on www.babypips.com website ""

There are TWO types of divergence:

 

  1. Regular divergence (RD)
  2. Hidden divergence (HD)



Regular Divergence

A regular divergence is used as a possible sign for
a trend reversal.If the price is making lower
lows (LL), but the oscillator is making higher lows (HL),
this is considered regular bullish divergence.

http://www.babypips.com/school/image...gence-blue.png


If the price is making a higher high (HH), but the oscillator is
lower high (LH), then you have regular bearish divergence.

http://www.babypips.com/school/image...gence-blue.png



Hidden Divergence

A hidden divergence is used as a possible sign for a
trend continuation. If price is making a higher low (HL),
but the oscillator is making a lower low (LL), this is
considered hidden bullish divergence.

http://www.babypips.com/school/image...gence-blue.png


If price is making a lower high (LH), but the oscillator is making
a higher high (HH), then you have hidden bearish divergence.

http://www.babypips.com/school/image...gence-blue.png


Best regards

  • #3
  • Sep 14, 2009 12:05pm Sep 14, 2009 12:05pm
Oscillators that I use for divergence tradingae are MACD and Awesome oscillator
  • #4
  • Sep 14, 2009 12:42pm Sep 14, 2009 12:42pm
Hey I am using divergence with MACD, do you have an indicator for MT4 that points it out automatically? I downloaded this weekend the FX_MACD_Divergence, and i am playing with it
  • #5
  • Sep 14, 2009 2:40pm Sep 14, 2009 2:40pm
Quoting jacobofx
Hey I am using divergence with MACD, do you have an indicator for MT4 that points it out automatically? I downloaded this weekend the FX_MACD_Divergence, and i am playing with it

sorry jacobofx, you mean an indicator for out of position automatically ?

if you mean this, sorry i dont have any indicator like this and i out position or close my divergence signal with technical methods

Glad to see your indicators if its free

thx
  • #6
  • Sep 14, 2009 2:52pm Sep 14, 2009 2:52pm
Dr. Alex Elder calls macd divergence the '..strongest signal in technical analysis.' My own trading system/methodology includes oscilllator divergence/extrems as part of a confluence of tech reasons to enter the market.

My experience is that there are dertain high probability patterns of bullish and bearish divergence and these are;

i.Regular Divergence - which can indicate a reversal/pullback in immediate prevailing price action.
ii.Hidden (sometimes called Reverse) Divergence - which can indicate a continuation in a trend following a pullback (the starting point of the pullback possibly indicated by Regular divergence/Extreme oscillator readings.)

These can be further sub-divided as:

a. Regular immediate [separate oscillator peak/valley] Divergence
b. Regular immediate [within same oscillator peak/valley] Divergence
c. Regular sequential Divergence [ie the overall sequence of oscillator peaks/valleys exhibits divergence)
d. Hidden (Reverse) Divergence

and of course;

e. Oscillator Extreme readings.

G/L
ex member
  • #7
  • Sep 14, 2009 2:55pm Sep 14, 2009 2:55pm
I got this indicator from MQL4.com, it tells you with an alarm when a divergance occurs (either type).

website: http://codebase.mql4.com/1115

The one i uploaded is modified with my settings, so you might want to get the one from the website. I use 21,55,8
Attached File(s)
File Type: mq4 FX5_MACD_Divergence_V1.1.mq4   12 KB | 3,783 downloads
File Type: ex4 FX5_MACD_Divergence_V1.1.ex4   11 KB | 2,833 downloads
  • #8
  • Sep 14, 2009 3:05pm Sep 14, 2009 3:05pm
HD for GbpUsd now in H1
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh1.gif Size: 22 KB
  • #9
  • Sep 14, 2009 3:20pm Sep 14, 2009 3:20pm
Quoting jacobofx
I got this indicator from MQL4.com, it tells you with an alarm when a divergance occurs (either type).

website: http://codebase.mql4.com/1115

The one i uploaded is modified with my settings, so you might want to get the one from the website. I use 21,55,8

Thanks dear jacobofx

you use this setting for all pairs ? also all time frames ?
and why you use this setting ?

Good Luck
  • #10
  • Sep 14, 2009 3:30pm Sep 14, 2009 3:30pm
Quoting USDmakers
Thanks dear jacobofx

you use this setting for all pairs ? also all time frames ?
and why you use this setting ?

Good Luck

Yes I use it for all pairs and timeframes. I just downloaded the indicator this past weekend so I am still testing it. The settings are numbers for the fibonacci sequence. I took a seminar and they were using that setting. Which one do you use?
  • #11
  • Sep 14, 2009 3:34pm Sep 14, 2009 3:34pm
No offense intended, and I guess you're starting an interesting discussion on good will, but credit must be due to the introduction part..... it's from babypips.com

http://www.babypips.com/school/regular_divergence.html



Cheers!
Many share my views with me. But I don't share them with them...
  • #12
  • Sep 14, 2009 3:38pm Sep 14, 2009 3:38pm
Quoting jacobofx
Yes I use it for all pairs and timeframes. I just downloaded the indicator this past weekend so I am still testing it. The settings are numbers for the fibonacci sequence. I took a seminar and they were using that setting. Which one do you use?
ok. thx jacobofx

i use MACD or AO oscillator by default setting
  • #13
  • Sep 14, 2009 3:49pm Sep 14, 2009 3:49pm
Quoting HouseTrader
No offense intended, and I guess you're starting an interesting discussion on good will, but credit must be due to the introduction part..... it's from babypips.com

http://www.babypips.com/school/regular_divergence.html


Cheers!
thanks for your notice,
I thinked that all members know this pictures are from babyepip, however I edited second post

thanks
  • #14
  • Sep 14, 2009 4:03pm Sep 14, 2009 4:03pm
jacobofx can you check Gbpusd
with these indicators that you use , we dont have any signal know
however we have a good (in my opinion) HD signals for Gbpusd now
  • #15
  • Sep 14, 2009 4:26pm Sep 14, 2009 4:26pm
Attachment I also got a HD on gbpusd 1 hr. So i am going to go to 15 min and try to trap price and see if I have a breakout to the upside. I am going to be careful, because we could have a lower high on the daily.
Attached Image (click to enlarge)
Click to Enlarge Name: gu 1hr.gif Size: 27 KB
  • #16
  • Sep 14, 2009 4:39pm Sep 14, 2009 4:39pm
Quoting USDmakers
thanks for your notice,
I thinked that all members know this pictures are from babyepip, however I edited second post

thanks
You're welcome

Keep it coming, and good trading!
Many share my views with me. But I don't share them with them...
  • #17
  • Sep 14, 2009 4:42pm Sep 14, 2009 4:42pm
Quoting jacobofx
Attachment I also got a HD on gbpusd 1 hr. So i am going to go to 15 min and try to trap price and see if I have a breakout to the upside. I am going to be careful, because we could have a lower high on the daily.
Yes , with your setting we have an bullish divergence signal and alert,
also with defult setting we have signal too, but no alert and no interrupted lines on chart and macd
  • #18
  • Sep 14, 2009 5:23pm Sep 14, 2009 5:23pm
Quoting USDmakers
Yes , with your setting we have an bullish divergence signal and alert,
also with defult setting we have signal too, but no alert and no interrupted lines on chart and macd

That is true, the lines don't appear with the original settings. I don't know what to say. I got the indicator from the website, sorry USDmakers
  • #19
  • Sep 14, 2009 8:07pm Sep 14, 2009 8:07pm
Got Classic Divergence or RD on ej 15 min. I was waiting to go short at 133.50 area because of fibo of a drop and R1, so watching
Attached Image (click to enlarge)
Click to Enlarge Name: ej.gif Size: 27 KB
  • #20
  • Sep 15, 2009 12:26am Sep 15, 2009 12:26am
Quoting jacobofx
That is true, the lines don't appear with the original settings. I don't know what to say. I got the indicator from the website, sorry USDmakers

Thanks jacobofx
0 traders viewing now