Very easy system

5 min divergence method

(chart further down in thread)


This is part Imran's system and part the guy who wrote this CCI div indicator. (I don't know his name but it's a great indicator - if it scrambles on load, just change time frames. It works fine on all TF's)

1. Add a 100, -100, 0, 200, -200 to CCI divergence indicator

2. Add ASCtrend_imran arrow indicator

3. Add a 20, 60, 200 ema to chart

4. If the 20 is below the 60 and you get bear divergence above 100 on the CCI indicator...enter on break of candle when Imran ASCTrend arrow pops up. Ignore all bull divergence arrows and bull asctrend arrows after the divergence arrives!!!! It may take 1 hr or so on the 5 min chart before the ASCTrend arrow arrives. Vise versa when the 20 is above the 60.

5. Make sure the 60 ema is pointed down. But, the best trades are when it may be starting to turn for the 20/60 cross. Let me know if you can identify this better then the just the turn. That's usually the biggest pip generator.

Let me clarify. Enter when it breaks by a few pips. Sometimes it takes a while because when the ASCTrend arrow pops up, the price may be dancing between the 20/60 ema. It may test the arrow candle a few times. You'll save yourself the grief of waiting it out. I've had it go 18 pips before falling.

Stop loss 20 pips + spread.

The cliff notes: Short: 20 below 60 ema, Divergence above 100 in
CCI, wait for the bear ASCtrend arrow and it may be a bit, Ignore all bull arrows, enter on a good break of arrow candle, 20 + spread SL, 5 min chart.
Opposite for long. Monitor it...sometimes you'll get a few...sometimes 60-70 pips.

I posted a chart further down.


P.S. Try loading ten charts with just the divergence indicator. Shrink them all down. Set them on 30 minute or 1 hr TF. When the alarm goes off, drop down to the 5 min and wait for the signs.

It takes 10 minutes to back test. If you try it let me now what your win ratio is. Also, I'll give you a way to get the secondary leg after the retrace. Not quite as simple but it gets you in when the 60 is turned up and there isn't a asctrend arrow.

examples and graphs please... how long have you been trading this and what results have you had...?

Some example chart please. Thank you for system.

This is extremely simple. I'm very busy and wasn't going to post it but I like this site for the info I've gleamed over the years.

Here's one chart. Back test it. It's from tonight.

Anyone that can't figure it out, can't trade forex.

Chart #2 is not as simple. Do it if you want to expand after doing the simple thing.

If you want to take a little more risky trade around the 20/60 cross when the 60 is not quite perfect in angle but you're thinking a cross is coming, then use the TDI indicator below. Make sure the yellow is pointed down, red pointed down (especially red), green crossing red below yellow, down over the 50 line (short). If the green/red cross happens below the yellow it's best. See how green TDI line bounced off the yellow...it found resistence. It's best under the yellow. Otherwise. Stick to the rules. If the 20 is under the 60 and everything pops out agreeing, go short ....you can expect an excellant win ratio.

The second chart is a good example. I didn't take the first arrow. Took the second because of the TDI configuration. This trade is not as easy because of the 20 over the 60. The first asctrend arrow would have paid a couple pips. The second one paid 20. Notice how the CCI went back over 100 and fell...no divergence but this is still something to look at after you've experienced it a bit and want to do something a little more challenging.

The most important things about the TDI. Green crossing red then crossing the 50 line. If the yellow is right there at the 50 line it can be a powerful explosion. If the red/green is crossing above the yellow, great! Green crossing the bollinger is another great spot. If your arrow and div. agree be ready! If you add it to this system. Pay attention to the angle of the red line and the yellow line. They should agree with your trade. Angled down, short, up, long. This is imperative. The yellow can be relatively flat in one more risky situation...the 20/60 cross....the yellow line is a smoothed version of the red TDI line. The red line turning is an indication yellow will follow. Especially when the 60 is not angled correctly for the 20/60 cross. If you remember just this and make sure red / green has crossed then you'll be ahead of the curve. Moving the risk up to 2 in the asctrend indicator works a little better if your using the TDI and CCI DIV.

The divergence starts playing out when it starts crossing the "0" line...it's usually in fully throttle by the time it hits 100,-100. It may die at 0 or 100 but it will always play out eventually. It's wave physics.

Divergence is probably one of the top 2 most powerful things in forex. It make's my bank grow.

Compassfx.com has lots of great video's on the TDI and other stuff. Look at their video's.

This trades just like it back tests. Back test it and you tell me. Demo it a few times.

Here's one that just went off....a quick 20 pips.

This also just went off....you could of got 10 pips. I was in E/U...missed this one.

I'm hoping to maybe get back into E/U after the retrace. But need another divergence...this is where the "0" level divergence is handy. It shows the retrace.

I looked only at EURUSD. Looks to me like you can make great buy entries by just the TDI green cross red when they are above yellow and yellow pointed up, or flat. then exit when green cross yellow down. (Or be more conservative and exit with greencross red down.) If green cross red up while below yellow, delay the buy until green cross yellow up.

Seems to also work well on M15.

Compare results using just this TDI to the more detailed system cugirl gave.

DrDave

Actually look at this JPG. It makes it a bit more complex but not bad. The key to what I posted is the simplicity of it....I just used the woodies CCI (6,14) for E/U tonight. It is even better then the TDI for exits. Entrance is about the same. Entrance is more important if you don't go negative! God bless compassfx!

You can just add a 6 CCI to the CCI divergence indicator if you want. CCI div. with 6 CCI added (I prefer woodies CCI), Asctrend arrow, ema's...for a basic set up. Forget the other stuff listed on the JPG. It's my way of making things more complex. (unless you want the TDI...Dr Dave is correct...it's a wonderful thing when you understand it)

For someone who doesn't want a bunch of indicators. The above system gets you in no problem when you follow the basic rules. The problem is if you don't get divergence. Then do the CCI thing...

Here, I'll post this.

If you don't get divergence but the CCI falls below -100 or above 100. (it can keep going to 300 so don't jump the gun). Do this.

You'll get at least the first arrow. Don't expect more then 1. You usually won't get it. I changed the risk fator to "2" in the asctrend arrow ind.. It gives more arrows. And a little more risk. This one had three. God bless Imran. Make sure the 60 bends up or wait for the first retrace after the 20/60 cross.

Look at the double line woodies CCI (CCIW). (the series starts at the first green verticle line in the jpg...no, actually I missed putting it in. Look at where the run starts before the first verticle green line) It has a 14 and a 6 line. When the green 6 cuts the blue 14 at the first green verticle line, then wait for it to fall below zero and come back up. I use zero for the entry or you can use the touch/cut of the blue 14 line if it's around "0". Usually it's around zero to 100. If you wait til 100 you may be late unless your towards the end of the run.

The exit. When the green 6 crosses back down over 100. Safe exit.

More risky because it may be the last small leg of the run. When the 14 comes down over 100. If it falls slow to the 100 line, that seems to be good. The 14 falling fast...it's over.

The blue line in the divergence CCI is 12 I believe. It works too...like the 14.

This is good for scalping the extra trades...remember 20ema over 60ema. Long. Under short.

I think woodies 14,6 CCI with a, -100, 0, 100 line, is as good as it gets for exits. God bless Woodie!

Now it's more complex. But better...cause you can leave the trade and go count your pips.

using billion indicators and calling it easy system?

this is some thing simple and easy....

Interesting system, thanks for sharing.
Can you please add a template?

Here's two in the last few hours....The first one, the 60 is flat. Not the greatest one but it paid....lots a pips. If you went in at exactly the break of the arrow candle you would have just survived by a few tenths of a point with a 20 + spread SL. Let it break a bit. Especially on the 20/60 cross trades. Or bump up your SL a little for the break trades.

These are the 20/60 crosses. The only place you can consider taking a trade when the 20 is above the 60 for a short. Be careful...they can bounce and go back up. The yellow dotted line is a 3ema.

Here's a few secondary trades. The first one wasn't a good setup because of the angle of the 60 at the arrow. But!!! There was a little retrace that bounced off the 20 ema after the break of the 20/60. Then the 60 was pointed down. You can take them with the 14,6 woodie CCI. Notice the two line CCI at the bottom. You can enter when the red line falls over the -100. (or on the break of the reversal candle) See how the red line loops and cuts -100 downward. Exit when it cuts upward across the same -100 line. I love that CCI. On the long runs the 6 will keep falling away from the 14 until it's over....then it cuts back over the -100. Exit.

I missed the above trades. I did catch 3 pips from the one at the end of the chart. I didn't stay in long because of the support line and the red 6 CCI line looped up quick. Sometimes you've got to be quick.

If you set the price lines to true in the divergence indicator then the line running down over the price will form a greater then sign with the group of three up arrows in the div indicator. It tells you the run is coming to an end and price will become greater soon...up


It was a very good night.

I've seen this whipsaw alot at the 20/60 break. There's no divergence on this one but look at where the CCI is above 100 then drops quickly under -100. I think the big banks are trying to take out the longs with a quick spike. They let the price go just enough above the 60 to lure you in thinking it's long...then boom...down. A 10-15 pips sl gets hit. People see the "W" at the bottom of the long run that ended and check their charts...then decide it's going long. A lot of money goes in at the break of the last high candle and then down quick. I bet they make big money on this.

If you wait for a divergence above 100 or below -100 and the proper arrow it usually protects you against it.

Can you pls let me know your CCI Divergence is it CCI 14 with price ?
Thanks!

There's the CCI woodies. You can use it for exits...unless you have another way.

Then the divergence indicator. It's a 14.

Here's the indicators.

If you want to get rid of the lines that the divergence indicator draws...when you load the indicator go to input and change price lines to false.