Divergence method

Hello
Today i wanted to try something new and developed litle simple system.
As i am still a newbie Wanted to ask you guys What do you think about this

Chart: 5 min
Indicators: Stochastic oscilator 10,3,3 levels 20, 80
RSI 9 (level 50)
EMA 5 , EMA 8
Entry:
Look at the chart and stochastic oscilator for divergence.
Then we need crosover of 5, 8 Emas
Confirmation of RSI (being above 50 for long, below 50 for short)
And Stochastic being not in overbought oversold condition

So what do you think about this?
Thanks in advance.

I think you should back off the 5M time frame... I think you should ask yourself where are the fundamentals... what are the interest rates... and then I think you should ask yourself why you would want to enter 17 bars behind the main price move.. what is the purpose of those stoch... how are they calculated and what do they mean.

here this is bad example quick pick trading in chop

The difference on daily fundies matter a whole lot....
ride the trend

notice : enter of challenge of high with break of previous bar high in direction of trend take 1/2 at wave break high.. make sure fundies are in direction... keep moving break even stops to accumulate position. This will pay Interest while you hold to exit always protecting your bottom line.

now look at your chart you entering 17 bars late ... against the grain of the trend at the resistance point. for about 60-70% of these

another here

Thank you weary much for valuable information. I' m learning more about it

could you post link where i can read about intrest rates?

http://investopedia.com/articles/for...edit-debit.asp

Whenever I look at divergence, it isn't very reliable.

I do love investopedia. Been my best friend in school.