DislikedI 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)?Ignored
High reliable divergence methodology of trading
- #42
- May 31, 2010 11:05pm May 31, 2010 11:05pm
Who had patience with this pair got a maximum of 67 pips, few hours ago, if you followed my signal. Unfortunately, I've closed only a partial profit of 21 pips, because my script didn't activate itself at 65 pips, only moved the stop loss in positive zone. Now the position it's on +1 pips, the remaining of the lot, and waits for 2nd target profit as you can see in the image:
- #44
- Edited 12:45am Jun 1, 2010 12:35am | Edited 12:45am
The remaining lot of the transaction closed at +1 pip, as you can see in the image below:
Since yesterday I have accumulated a total of 26 pips profit in four transactions on this method. I look forward for your signals too and analyses on this strategy.
Good luck in trading.
Since yesterday I have accumulated a total of 26 pips profit in four transactions on this method. I look forward for your signals too and analyses on this strategy.
Good luck in trading.
- #52
- Edited Jun 2, 2010 12:21am Jun 1, 2010 11:48pm | Edited Jun 2, 2010 12:21am
I want you now to keep on eyes on this pair, because it has an opportunity for shorting it for few pips, maybe more, we'll see very soon.
I forgot to mention that, in case of the regular bearish divergence if the price is closing near the 1stMZ (first management zone), will lay with the close of the price on it or even break it, it will cancel the future transaction. This rule it is very important because the price could correct itself even less then 23.6 Fibonacci retrace and make a narrow correction - named consolidation and will assume that the momentum it is consumed.
I haven't drawn the notations yet, I will if I will see an intent of breaking the trend line. You can observe that the target profits are very close and the trend line very tight to the upper trend for this case.
Also, as you can see, the Fe 61.8 corresponds to the 50.0 retrace and the Fe 100.0 between 78.6 and 88.6 Fibonacci level, as a simple curiosity.
I forgot to mention that, in case of the regular bearish divergence if the price is closing near the 1stMZ (first management zone), will lay with the close of the price on it or even break it, it will cancel the future transaction. This rule it is very important because the price could correct itself even less then 23.6 Fibonacci retrace and make a narrow correction - named consolidation and will assume that the momentum it is consumed.
I haven't drawn the notations yet, I will if I will see an intent of breaking the trend line. You can observe that the target profits are very close and the trend line very tight to the upper trend for this case.
Also, as you can see, the Fe 61.8 corresponds to the 50.0 retrace and the Fe 100.0 between 78.6 and 88.6 Fibonacci level, as a simple curiosity.
- #53
- Jun 2, 2010 12:19am Jun 2, 2010 12:19am
It's a great probability for us to cancel this whole scenario of entering this trade, because the management zone it's very close, might be 5-6 pips to management zone, even less, who want to enter enters on his own skin.
If it does not have a 8-10 pips I will not enter on it, it's not safe so I will prefer to skip it for another better one, even the risk is very decreased. It works better from 4h to bigger time frame. Likewise if the candle doesn't close with the breaking candlestick closing below 1.0562 where is the previous candlestick's close, I will not trigger the entry.
If it break the trend line under the few rules I have mentioned before and doesn't not make a higher high, will enter short with these coordinates:
SL: 1.0576
MZ: 1.0554 (SL +1 pip)
1st TP: 1.0533 (1/3 partial close)
2nd TP: 1.0510 (1/3 partial close)
3rd TP: 1.0473 (1/3 partial close)
If it does not have a 8-10 pips I will not enter on it, it's not safe so I will prefer to skip it for another better one, even the risk is very decreased. It works better from 4h to bigger time frame. Likewise if the candle doesn't close with the breaking candlestick closing below 1.0562 where is the previous candlestick's close, I will not trigger the entry.
If it break the trend line under the few rules I have mentioned before and doesn't not make a higher high, will enter short with these coordinates:
SL: 1.0576
MZ: 1.0554 (SL +1 pip)
1st TP: 1.0533 (1/3 partial close)
2nd TP: 1.0510 (1/3 partial close)
3rd TP: 1.0473 (1/3 partial close)
- #54
- Edited 1:00am Jun 2, 2010 12:38am | Edited 1:00am
I canceled this trade setup because from the close of the candlestick it is only a 4 pips distance to the management zone (MZ), not to mention that my spread is 4 for this pair. Even the trade would be a very good entry and makes a 1000 pips massive sell-off, I don't regret that I am not in it because are various setups waiting for analysis.
- #60
- Jun 3, 2010 2:51am Jun 3, 2010 2:51am
Unfortunately I was stopped out of the trade.
Did I get the settings correct?
Enjoy it.