The Big "D" Method | Page 4 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk 46 replies

"LOW" Win Rate, "BIG" Reward 166 replies

Dealing with "Invalid Price", "Requote", "Server Busy" in MT4 3 replies

bo7a method... method for GBP/JPY 205 replies

"Bagovino Method" VS "Cornflower Hourly System" 16 replies

Attachments: The Big "D" Method
Exit Attachments

The Big "D" Method

  • #61
  • Jan 23, 2011 2:00pm Jan 23, 2011 2:00pm
Quoting sam2vt
Hi lgtj,

I found Hidden Bearish Divergence from UJ, please correct me if am wrong. However, when the line drawn from MACD histogram is being touched. is it matter for the set up?

Sam
Yes, this is hidden bearish divergence. I don't understand your second question.
  • #62
  • Jan 24, 2011 9:27am Jan 24, 2011 9:27am
Quoting lgtj
Yes, this is hidden bearish divergence. I don't understand your second question.
Hi lgty,

Thanks for your confirmation. Kindly refer to the doc file for my second question. I try my best to form a better understanding question as am not good in English.

Thank you very much.
Attached File(s)
File Type: doc MACD.doc   42 KB | 481 downloads
  • #63
  • Jan 24, 2011 12:10pm Jan 24, 2011 12:10pm
Quoting sam2vt
Hi lgty,

Thanks for your confirmation. Kindly refer to the doc file for my second question. I try my best to form a better understanding question as am not good in English.

Thank you very much.
Ok, I think I understand. When you plot a trend line on the macd, it's ok if the trend line touches the macd histogram. That's the way that I plot my trend lines on the macd. I hope this answers your question.
  • #64
  • Jan 24, 2011 12:21pm Jan 24, 2011 12:21pm
Here are two pairs that I'm watching closely.
Attached Image (click to enlarge)
Click to Enlarge Name: eurchf.gif Size: 25 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gbpchf.gif Size: 23 KB
  • #65
  • Mar 20, 2011 9:45pm Mar 20, 2011 9:45pm
Hi Lgtj,

Thanks for the posts and charts. Please continue to do so. I have to trade the daily charts and this is helpful. I am wondering if you ever use Pin Bars or Inside Bars etc. at divergence levels to help confirm your trade entries?

Thanks,
C.
  • #66
  • Mar 20, 2011 10:44pm Mar 20, 2011 10:44pm
Quoting calbracht
Hi Lgtj,

Thanks for the posts and charts. Please continue to do so. I have to trade the daily charts and this is helpful. I am wondering if you ever use Pin Bars or Inside Bars etc. at divergence levels to help confirm your trade entries?

Thanks,
C.
Hello calbracht. No, I don't use pin bars and inside bars to confirm my entries. A trend line break with a closed candle and divergence is all I need to confirm my entries. I think the most reliable candle formation at divergence levels are the bullish and bearish engulfing candles.
  • #67
  • Mar 21, 2011 3:49am Mar 21, 2011 3:49am
hello lgtj,

i traded almost the way like yours!
However with an added filter i.e. div plus price bounce off Bollinger.
Bythe way what is your success rate? Thanks.
  • #68
  • Mar 21, 2011 4:59am Mar 21, 2011 4:59am
Quoting snowhyte
hello lgtj,

i traded almost the way like yours!
However with an added filter i.e. div plus price bounce off Bollinger.
Bythe way what is your success rate? Thanks.
Hello snowhyte. Sorry, but I don't have any win/loss stats for you. I just trade when there's a set up.
  • #69
  • Mar 21, 2011 7:12pm Mar 21, 2011 7:12pm
Hi,

I like divergence technique pretty much cos it is an easier visual method. The reason I asked because I have low entry opportunity cos I am always unsure even though with filters e.g. trend line break or 2 or 3 multiple indicators confirmation.

How to make sure that a divergence is a real divergence? I was caught many times and nowadays I hesitated to enter even when there is clear divergence.

Back test of a few pairs showed many instances where divergence failed.

Any advice to improve success rate? thanks.
  • #70
  • Mar 21, 2011 7:29pm Mar 21, 2011 7:29pm
Quoting snowhyte
Hi,

I like divergence technique pretty much cos it is an easier visual method. The reason I asked because I have low entry opportunity cos I am always unsure even though with filters e.g. trend line break or 2 or 3 multiple indicators confirmation.

How to make sure that a divergence is a real divergence? I was caught many times and nowadays I hesitated to enter even when there is clear divergence.

Back test of a few pairs showed many instances where divergence failed.

Any advice to improve success rate? thanks.
My advice to improve the success rate would to look at the weekly and monthly charts to see if price action agrees with the daily time frame's divergence.
  • #71
  • Mar 24, 2011 12:36pm Mar 24, 2011 12:36pm
"My advice to improve the success rate would to look at the weekly and monthly charts to see if price action agrees with the daily time frame's divergence."

Hi lgtj,

Could you please show some charts or drawings that would graphically depict what you said above? I went back to the first page to see if I could pick up on what you are saying here, but I'm not sure about it. When does a weekly or monthly chart agree with divergence on a daily chart? What does it look like? Thanks.

C.
  • #72
  • Mar 25, 2011 11:23pm Mar 25, 2011 11:23pm
Quoting calbracht
"My advice to improve the success rate would to look at the weekly and monthly charts to see if price action agrees with the daily time frame's divergence."

Hi lgtj,

Could you please show some charts or drawings that would graphically depict what you said above? I went back to the first page to see if I could pick up on what you are saying here, but I'm not sure about it. When does a weekly or monthly chart agree with divergence on a daily chart? What does it look like? Thanks.

C.
Ok calbracht, here's a perfect example of what I mean by checking the monthly and weekly charts to confirm the daily chart's divergence. It's eurusd. Although it's been in an uptrend, it appears that it's running out of steam. Divergence doesn't lie! When a daily candle breaks and closes beneath the upward trendline, we MIGHT have a trend change. I hope these charts answer your question.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd m1.gif Size: 23 KB

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd w1.gif Size: 25 KB

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd d1.gif Size: 25 KB
  • #73
  • Mar 25, 2011 11:48pm Mar 25, 2011 11:48pm
Here's one more example that just occurred on gbpusd.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd m1.gif Size: 22 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd w1.gif Size: 21 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd d1.gif Size: 27 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd d.gif Size: 27 KB
  • #74
  • Mar 26, 2011 11:44am Mar 26, 2011 11:44am
Thanks for the extra effort lgtj. Much appreciated.
C.
  • #75
  • Mar 26, 2011 10:44pm Mar 26, 2011 10:44pm
Quoting calbracht
Thanks for the extra effort lgtj. Much appreciated.
C.
You're welcome.
  • #76
  • Mar 31, 2011 6:13pm Mar 31, 2011 6:13pm
Hi lgtj

Thank you for taking the time to post your wonderful system...it looks like you 've had some help from above!!!! Tell me please, do you trade one pair at the time, or you also do multiple pairs?
God bless you my friend, and indeed...Jesus IS Lord!!!!!

T. Costa
  • #77
  • Mar 31, 2011 9:43pm Mar 31, 2011 9:43pm
Quoting costa
Hi lgtj

Thank you for taking the time to post your wonderful system...it looks like you 've had some help from above!!!! Tell me please, do you trade one pair at the time, or you also do multiple pairs?
God bless you my friend, and indeed...Jesus IS Lord!!!!!

T. Costa
Hello costa. I trade 3 pairs with this method: EURUSD, GBPUSD, USDCHF.
  • #78
  • Apr 1, 2011 2:07pm Apr 1, 2011 2:07pm
Since it looks like the only safe/winning divergence trades are taken only after a trendline break, it would be helpful to elaborate on that point a bit more. Drawing trendlines can be somewhat to very subjective, and I'd like your rules for drawing them and which ones to take, since there are "internal" and "external" TLs that often show up on the daily charts. Correct me if I am wrong about that.

Thanks again,

C.
  • #79
  • Apr 1, 2011 6:54pm Apr 1, 2011 6:54pm
Quoting calbracht
Since it looks like the only safe/winning divergence trades are taken only after a trendline break, it would be helpful to elaborate on that point a bit more. Drawing trendlines can be somewhat to very subjective, and I'd like your rules for drawing them and which ones to take, since there are "internal" and "external" TLs that often show up on the daily charts. Correct me if I am wrong about that.

Thanks again,

C.
Ok, it's quite simple. I plot the trend lines at the points where the divergence takes place. I plot them at the recent swing lows if I'm expecting to go short or at the recent swing highs if I'm expecting to go long.Take a look at the examples. I hope this answers your question.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 23 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 26 KB
  • #80
  • Apr 2, 2011 2:59pm Apr 2, 2011 2:59pm
Thanks lgtj. I see that you wait for a divergence to show up on the ocillator, then draw the TL across the major highs or lows, depending on the direction, then wait for a close below the TL, thus avoiding most bad (too early) entries.

I see you are currently using the AO instead of the MACD on the lase few charts. Is there a reason, or does it matter?

Thanks again.
C.
0 traders viewing now