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High reliable divergence methodology of trading

  • #21
  • May 31, 2010 2:12am May 31, 2010 2:12am
Quoting rygel2001
eurjpy short signal in m15 and m30 from macd, heiken ashi and psar indicators.

EDIT: it seem that all jpy pairs are on sell
If you have some other opportunities regarding this divergence strategy I will happily ask you to join us, with images and explanations. We'll try to keep it on the subject. Thanks for the signal.
  • #22
  • May 31, 2010 9:29am May 31, 2010 9:29am
As you can see in the image bellow, this pair it's inside a narrow intra-day range and our short position need patience to develop. Also, you can see how the price rejected near the 2nd MZ (green ellipse) to upside and since then just continued a long chain of short indecision candlesticks. The orange rectangle is the unrelated management zone, which was broken by the first candlestick which broke the trend line also.

Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy1h.PNG Size: 38 KB
  • #23
  • May 31, 2010 9:43am May 31, 2010 9:43am
Would this have been an acceptable trade set up?
Attached Image (click to enlarge)
Click to Enlarge Name: gu.gif Size: 22 KB
  • #24
  • Edited 10:07am May 31, 2010 9:54am | Edited 10:07am
Quoting billbss
Would this have been an acceptable trade set up?
After your image you entered in that transaction too late, my friend. Here is it where you suppose to enter long, according to this image:

Attached Image (click to enlarge)
Click to Enlarge Name: gu.gif Size: 23 KB


Additional exclamation marks:

As you observed on the opening you have a gap down, this should trigger you special attention in your mind and secondly the big trend is down too.
But even so, the long it would be worked just fine.

PS:
I recommend you to exit that trade, if you intended to enter by this method.
  • #25
  • May 31, 2010 9:59am May 31, 2010 9:59am
firstly very nice keep posting http://cdn.forexfactory.com/images/s...m/thumbsup.gif

secondly :
Attached Image (click to enlarge)
Click to Enlarge Name: 1.gif Size: 32 KB
  • #26
  • May 31, 2010 10:16am May 31, 2010 10:16am
Quoting bphone
firstly very nice keep posting http://cdn.forexfactory.com/images/s...m/thumbsup.gif

secondly :
Thank you for posting one of the regular type of divergences, because I forgot to put some transactions with these examples.

Attached Image (click to enlarge)
Click to Enlarge Name: cadjpy.png Size: 31 KB


I recommend you to take transactions on these type of divergences with very much caution, a 10x lesser lot size than the corresponding to the hidden divergence ones. As I said earlier, the trend line will be drawn very tight on the chart. You might put you Fibonacci Expansion on the chart and the management zones for a better discipline in trading.
  • #27
  • May 31, 2010 10:25am May 31, 2010 10:25am
My transaction was closed once again at +1 pip after I closed manually before the trailing stop to be active, the price was fluctuating so rapidly after the 2nd MZ was hit and I could not locked it on +1 by moving the stop loss. What is more important is, even today I've got only 2 pips in profit, I protected the capital.

Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy1h.PNG Size: 22 KB
  • #28
  • May 31, 2010 10:26am May 31, 2010 10:26am
Quoting diavolul
When I was thinking this method I was thinking especially to the lack of discipline of the majority of traders I have been in contact for few years, they had various points of entry but only few and inconsistent exit points. This is a methodology taught and improved for several months, fourteen in number.

Firstly, I have to say the method implies the presence of the divergence on the one of the three indicators: Color stochastic, Moving average of the oscillator and the Commodity channel index. The reason I use three indicators is that

Secondly,...
I am glad for new thread but i first must say you cant work just with Divergence method that is just confimation from main trading styles i tested one year with all type of divergence and my advice dont trade mainly Divergence use just for confirmation.


Cheers and happy trading
"Buy on fear, sell on greed !!!
  • #29
  • May 31, 2010 10:34am May 31, 2010 10:34am
Quoting Petar_Serbia
I am glad for new thread but i first must say you cant work just with Divergence method that is just confimation from main trading styles i tested one year with all type of divergence and my advice dont trade mainly Divergence use just for confirmation.


Cheers and happy trading
Thank you for your opinion, I am doing just great. It's true that implies a lot and lot of patience but I have testing it for so many months and when I was looking for the missing final piece, I start to read again and I was finnaly got the last piece from the puzzle: the local support or resistance. I don't usually agree that a resistance from a far past is gone to work properly, but I don't want to make a debate on this subject now.
Also, I want to mention modestly that this is not the only method I do use with succes.
  • #30
  • May 31, 2010 10:53am May 31, 2010 10:53am
Sorry for giving you such a short notice about my positioning on this pair, I have seen it with about 10 seconds before the 1h candlestick broke the trend line:

Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy1h.PNG Size: 40 KB


Short open: 132.18
SL: 132.95
1stMZ: 132.07 (which will be no longer usable because the candlestick closes at a 10 pips distance from it and out spread does not allow to assure on +1 pip)
2ndMZ: 131.76 (+1 pip SL)

1stTP: 131.43 (1/3 partial close)
2ndTP: 130.54 (1/3 partial close)
3rdTP: 129.09 (1/3 partial close)
  • #31
  • May 31, 2010 11:41am May 31, 2010 11:41am
Quoting Petar_Serbia
I am glad for new thread but i first must say you cant work just with Divergence method that is just confimation from main trading styles i tested one year with all type of divergence and my advice dont trade mainly Divergence use just for confirmation.


Cheers and happy trading
can you say something more?
after year of trading with div you found out that its not worth ?
  • #32
  • May 31, 2010 12:33pm May 31, 2010 12:33pm
Quoting bbolss
can you say something more?
after year of trading with div you found out that its not worth ?
No, I didn't. But it depends how is implemented in a valid strategy. It's not sufficient to have a divergence pointing a direction or another, it has to be in a set of rules and so on.
  • #33
  • May 31, 2010 12:42pm May 31, 2010 12:42pm
i known i use div a lot ! check my posts ;p

i just wanna known why Petar_Serbia sayed that div should be used only for conformation - i dont think so
lot of pips!
  • #34
  • May 31, 2010 2:13pm May 31, 2010 2:13pm
diavolul,
Thank you for posting your divergence strategy. I confirm divergence a little differently than you do with your trendline break. I wait for a candle of opposite color which has no resemblance of a pinbar and has a change in RSI value. I also use a couple other rules. Divergence can't be more than 5-6 days old and at least 4 bars old on a 4H chart. I like to have an RSI applied to (high) and an RSI applied to (low) on my chart. On the chart below, there is RSI (low) divergence , candle is presently the right color (green) but looks too much like a pinbar. Also, RSI hasn't changed value yet. If price comes up ,changes the form of the candle and RSI value increases over the value of the previous candle, I'm in at candle close. I usually try for 50 pips on a 4HR chart.
Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 20 KB
  • #35
  • May 31, 2010 2:48pm May 31, 2010 2:48pm
Quoting Toothman
diavolul,...
I disagree with the number of bars which could keep a transaction, if that you just said with the: "Divergence can't be more than 5-6 days old and at least 4 bars old on a 4H chart." I didn't tested RSI too much, it's not for my taste. But if it's working very good for you, congratulations! What do you say about the idea of accounting in a statistical way (by your entry signal) how much move can produce in average (time and pips)?
  • #36
  • May 31, 2010 2:57pm May 31, 2010 2:57pm
Quoting bbolss
i known i use div a lot ! check my posts ;p

i just wanna known why Petar_Serbia sayed that div should be used only for conformation - i dont think so
lot of pips!
I will take a look at your postings Petar. I am new around here, it's just that you'll have to give me a little time.
I've been posting on a different forum for almost two years and the people from there weren't very interested in such of analysis or signals, even it is valid? I hope it's not so much rocket science in it. I opened an Ichimoku analysis thread and nobody posted anything on it. I have great ideas, original stuff which I have never seen on the web, I mean not in this version. I tried to make a prediction and it worked and still the people were dismissive. I like doing things like a professional, not in a mediocre style. Keep in touch.
  • #37
  • May 31, 2010 3:08pm May 31, 2010 3:08pm
hmm it imust were some strange forum
here you are free to post anythink ! and i think that a lot of pepoul will be interested in it !

so welcome here and a lot of pips! !!;D
  • #38
  • May 31, 2010 3:14pm May 31, 2010 3:14pm
Quoting bbolss
i known i use div a lot ! check my posts ;p

i just wanna known why Petar_Serbia sayed that div should be used only for conformation - i dont think so
lot of pips!
I TESTED and i compared trades from all year just with divergence and divergence+other tehnique results is just divergence is very variable very changable one month very good,one one month very bad,and with divergence you cant hold optimum results in year.Results with other tehniqes is better but for me i trade my private system for every day and daily based on large frame with great results.
Also remember one if you dont use good MM and if strategy cant give you RRR min 1:2 forget about trading...I with my private system trade in some trades RRR 1:6,1:7,1:8 RRR

I wish you good pips with this system i just wanted to give advice for new traders...


Cheers and take care
"Buy on fear, sell on greed !!!
  • #39
  • May 31, 2010 3:23pm May 31, 2010 3:23pm
Quoting diavolul
I will take a look at your postings Petar. I am new around here, it's just that you'll have to give me a little time.
I've been posting on a different forum for almost two years and the people from there weren't very interested in such of analysis or signals, even it is valid? I hope it's not so much rocket science in it. I opened an Ichimoku analysis thread and nobody posted anything on it....
Diavolul i am glad you will work seriouse about your style trading and i wish you all the best

Traders on this forum must find their personality and their style of trading that is very important.Two years ago i was looking just for my personalty and strategy i enjoy to trade.Now one year i am in profit every month.



Cheers and take care
"Buy on fear, sell on greed !!!
  • #40
  • May 31, 2010 3:39pm May 31, 2010 3:39pm
Quoting Petar_Serbia
I TESTED and i compared trades from all year just with divergence and divergence+other tehnique results is just divergence is very variable very changable one month very good,one one month very bad,and with divergence you cant hold optimum results in year.Results with other tehniqes is better but for me i trade my private system for every day and daily based on large frame with great results.
Also remember one if you dont use good MM and if strategy cant give you RRR min 1:2 forget about trading...I with my private system trade in some trades RRR...
hmm interested whad you say!
im playing with div almoust 3monnths and its all ok
you say that this will end?
nice to known i will be more caerfoul !
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