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Divergence trading

  • #61
  • May 17, 2008 8:41pm May 17, 2008 8:41pm
Quoting madscalp
Hi Paris
Do you use yourself this system ?
Is there a RSI and a CCI which indicates the divergence by an alert or an arrow ?
Regards
No, I don't have a arrow indicator for the rsi and cci indicators that tracks divergence. You can simply use the arrow indicator in this thread and then check to see if the cci and rsi confirm and if you have a pin bar. I only look for new lower lows and higher highs of the data that may be failed highs/lows in a form of a pin bar. That's the way i was taught. There isn't alot of signals but they usually turn out winners. My problem has alway been in OVER TRADING. Signals that aren't clear and imperfect i would still try. Now i only wait for perfect set ups and very clear signals and try to stay away from OVER TRADING or trading because i'm impatient. If there's any doubt with a set up , don't trade it and just wait for a more clear signal. Paris
  • #62
  • May 18, 2008 1:34am May 18, 2008 1:34am
It's a nice system.
The way of entry is very clear but of course the exit is more difficult.
You spoke about an exit on a support or a resistance.
Could you explain your exit method ?
Regards
  • #63
  • May 18, 2008 10:02am May 18, 2008 10:02am
Quoting madscalp
It's a nice system.
The way of entry is very clear but of course the exit is more difficult.
You spoke about an exit on a support or a resistance.
Could you explain your exit method ?
Regards

The way I do it and the way the 40 year veteran trader does it is we put a 62EMA on our charts. Price most often seems to gravitate to this level, hovers around it and sometimes breaks it. When price breaks the 62ema you have money in the bank. You can use the 62ema as a support and resistance mark.
You can also look for other areas of strong support and resistance. If you want, you can exit part of your position at the 62 and see if you can get more as it sometimes breaks it. You can move your stop loss order to break even after you're in profit by the same number of pips that you're risking with the stop loss order. This sometimes will take you out at break even which could be annoying but I still do it. When the indicators retreat back and break the 50 level on the rsi and cci this is a very good time to exit. That way you don't give up too much of your profit. Paris
  • #64
  • Edited 4:09am May 19, 2008 3:37am | Edited 4:09am
I put in the cci indicator in awhile back and have just started using it. Can anyone tell me what the thin white and yellow bars in the histogram mean? It works well with my stochs for divergence, I'd just like to know what the rest of the indicator is telling me. Thanks.
  • #65
  • May 20, 2008 4:35pm May 20, 2008 4:35pm
There was a nice divergence trade with cci and rsi with a pin bar about 12 hours ago on the 4 hour time frame of the AUD/JPY. So far it's in profit. Paris
  • #66
  • May 20, 2008 5:22pm May 20, 2008 5:22pm
Hi Paris,

Would you please show us the chart on this divergence? Thanks.


Quoting Paris Hilton
There was a nice divergence trade with cci and rsi with a pin bar about 12 hours ago on the 4 hour time frame of the AUD/JPY. So far it's in profit. Paris
  • #67
  • May 21, 2008 3:59pm May 21, 2008 3:59pm
I happen to miss this one but there was a very clear divergence yesterday on daily time frame of the EUR/AUD with a pin bar and clear signals with the rsi and cci showing divergence to the new data low. It was even bouncing off a strong support level. That is a perfect example. Paris
  • #68
  • May 21, 2008 6:00pm May 21, 2008 6:00pm
In Woodies CCI I think you establish a trend after the CCI is above/below the 0 line for a certain amount of bars - I assume this is what it relates to.


Quoting techtrader10
I put in the cci indicator in awhile back and have just started using it. Can anyone tell me what the thin white and yellow bars in the histogram mean? It works well with my stochs for divergence, I'd just like to know what the rest of the indicator is telling me. Thanks.
  • #69
  • May 24, 2008 1:43am May 24, 2008 1:43am
FX11,,

how have u been??

sonic
  • #70
  • May 27, 2008 6:54am May 27, 2008 6:54am
hi guys! I have questions. I've installed the latest fx5 divergence indicators one that repaints and one that doesn't but I happen to miss the signal all the time. Does the arrow appear after one bar has already closed?

i wanted to SELL on this signal but it appears it only showed just recently because I've been monitoring last couple of hours and now I see the arrow. It seems like I'm very late. Does any1 misses the arrow? Because I've been thinking to sell right after the arrow bar closes.
http://i262.photobucket.com/albums/ii81/Togu1/ec.gif
  • #71
  • Jun 15, 2008 4:46am Jun 15, 2008 4:46am
Stochastic Divergence Multi Time Frame

Cheers,

byens
Attached File(s)
File Type: mq4 Stochastic_DivergenceMTF.mq4   15 KB | 2,271 downloads
  • #72
  • Jun 15, 2008 5:21am Jun 15, 2008 5:21am
TimeFrime current= 0 .

cheers,

byens
  • #73
  • Oct 8, 2008 5:25pm Oct 8, 2008 5:25pm
Quoting byens
Stochastic Divergence Multi Time Frame

Cheers,

byens
Terima kasih Banyak....[Indonesian Language]

Thank's So Much... at last I found what i Need!!! ...
  • #74
  • Dec 16, 2009 5:51am Dec 16, 2009 5:51am
how to read the cci indicator with this divergence?
  • #75
  • Feb 28, 2010 6:57pm Feb 28, 2010 6:57pm
If the price is making lower lows (LL), but CCI (or any other oscillator) is making higher lows (HL), this is considered regular bullish divergence.
it indicates REVERSAL i.e. price will soon change its trend.

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

If price is making a higher low (HL), but the Oscillator is making a lower low (LL), this is considered hidden bullish divergence.

indicates continuation of trend.


If price is making a lower high (LH), but the oscillator is making a higher high (HH), then you have hidden bearish divergence.
Indicates Continuation of trend.
  • #76
  • Feb 28, 2010 9:01pm Feb 28, 2010 9:01pm
I have a trading method I'm working with and I was told to set up a MACD. I did that, but the person who told me to do that said that I would have a signal line and the vertical lines and a MACD line. I have
the vertical lines, I think they're called Histogram or history lines and the
signal line. Question is: where does the other line come from? I'm setting up the MACD as 12, 26, 9. Is the other line a moving avg. and if so, how do I insert it in the MACD?
Thanking all help in advance.
Deke
  • #77
  • Mar 4, 2010 5:38am Mar 4, 2010 5:38am
Hey Deke,
i hope this helps:

http://forex-indicators.net/macd
  • #78
  • May 28, 2010 3:40am May 28, 2010 3:40am
I do not doubting your capability to make money with this system because I use myself a trading system based on the divergence between price and oscillators, even so I am wondering how do you make your exits? Why I am asking that? Because most of the trades lose money on exit not on entry of a trade. Good entry, bad exit. You know what I mean. If you can post few losing trades I would be joyful. Thanks.

Andrei D.
  • #79
  • Jun 6, 2010 2:37am Jun 6, 2010 2:37am
Quoting King Singh
If the price is making lower lows (LL), but CCI (or any other oscillator) is making higher lows (HL), this is considered regular bullish divergence.
it indicates REVERSAL i.e. price will soon change its trend.

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

If price is making a higher low (HL), but the Oscillator is making a lower low (LL), this is considered [b]hidden bullish...


I think, simply put, if the RD/HD was found on the top, the signal is SELL.

If the RD/HD was found at the bottom, the signal is BUY.


Questions, what is the best oscillator to be used to detect divergence? MACD, stoch or CCI?

What is a good exit strategy? For me, if another divergence comes out, I exit (usually with a loss) =(
  • #80
  • Jun 29, 2010 11:39am Jun 29, 2010 11:39am
Could someone please modify this FX5-indicator to run with JRSX???
I noticed that the JRSX-indicator ist very good to detect divergences.

Attached File(s)
File Type: mq4 FX5 Divergence v3.mq4   10 KB | 2,774 downloads


Attached File(s)
File Type: mq4 Turbo_JRSX2.mq4   3 KB | 2,038 downloads
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