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EASY H1 trading using divergence and candle sticks

  • #61
  • Mar 22, 2012 12:21pm Mar 22, 2012 12:21pm
Quoting alphine
How we know that price won't go down more? ( for AUDUSD ). Should we wait for bulish candle for next candle?
We dont know if the price will continue or reverse as no one can tell the furture. That is why we place an SL in case it goes against us. When we have candlestick patterns and divergence, we are hoping this will give us a small edge, but that is all it will do. you WILL have losers and that is part of trading. As long as you control your losses you will be around to trade the next setup when you get it.
  • #62
  • Mar 22, 2012 12:51pm Mar 22, 2012 12:51pm
for "possible" LONG setups. As things stand now and we have 10 more minutes to go for this candle to close, we are getting nice hammer formations on EJ, GJ and UJ with clear divergence on RSI. I see that EJ and GJ are at previous resistance levels which may become support now. So this would be a nice setup if we trigger long. The only bad thing about it is that we are in NY afternoon time which is generally super slow.
  • #63
  • Mar 22, 2012 1:30pm Mar 22, 2012 1:30pm
This level may give us an opportunity for a short trade as the pair is sitting at parity which "should" be an important psych level... keep an eye on this level
  • #64
  • Mar 22, 2012 2:37pm Mar 22, 2012 2:37pm
The Loon being worth more than US Dollar.....can't have that
  • #65
  • Mar 22, 2012 2:39pm Mar 22, 2012 2:39pm
Quoting goldsurfer
The Loon being worth more than US Dollar.....can't have that
Nope -- gotta short this sucker LOL
  • #66
  • Mar 22, 2012 3:59pm Mar 22, 2012 3:59pm
Quoting PurePrice
for "possible" LONG setups. As things stand now and we have 10 more minutes to go for this candle to close, we are getting nice hammer formations on EJ, GJ and UJ with clear divergence on RSI. I see that EJ and GJ are at previous resistance levels which may become support now. So this would be a nice setup if we trigger long. The only bad thing about it is that we are in NY afternoon time which is generally super slow.

If you took those Long trades, you should be at TP1 now. Close partial and move rest to BE as it is end of NY session also.
  • #67
  • Mar 22, 2012 4:01pm Mar 22, 2012 4:01pm
Quoting PurePrice
This level may give us an opportunity for a short trade as the pair is sitting at parity which "should" be an important psych level... keep an eye on this level

As expected, the USDCAD hit the parity level like it just hit a cement wall and dropped 15 pips. Now that it is end of NY session, who knows what will happen with the dead trading period until Sydney/Tokyo open.
  • #68
  • Mar 22, 2012 4:28pm Mar 22, 2012 4:28pm
good calls PP. Please keep posting your charts for us ignorant of this pure trading style Even if after the fact that way I can check and see if I saw what I thought i saw....

cheers
  • #69
  • Edited 4:55am Mar 23, 2012 4:15am | Edited 4:55am
what is the best method to place our TP ? thank you so much sir Pure Price!

http://i42.tinypic.com/23vm5gm.jpg
If you have to make a mistake, make sure it is a new one
  • #70
  • Mar 23, 2012 5:30am Mar 23, 2012 5:30am
Quoting Komugi
what is the best method to place our TP ? ...

Hello Komugi,

i would look always for previous support and resistance for possible target points. I have attached a H1 chart (TP = gold price label), there you can see the neckline of SHS-pattern, this is a strong support area (TP1). If we break this, we have a broken trendline, where we may can expect a possible bounce and retest (TP2). Equal how the market will go, on this trade i would advise very tight SL as we had a straight upmove the last hours and a continuation is anytime possible.

Attached Image (click to enlarge)
Click to Enlarge Name: divergence-2303.gif Size: 12 KB


Hopefully this helps a little bit :-)

Regards...

Chriss
  • #71
  • Mar 23, 2012 8:37am Mar 23, 2012 8:37am
Quoting Komugi
what is the best method to place our TP ? thank you so much sir Pure Price!

http://i42.tinypic.com/23vm5gm.jpg

I generally like to place a first TP at the same amount as my SL. SL is normally a few pips above or below the high/low of the pinbar (or englufing) candle depending hther you are going short or long of course. So that should be eay to do, and will give you a chance to make some money on the trade and would be a 1:1 risk. If you are a trader that would liek to stay in the trade and get more out of it incase it continues in your favour. Then as your trde hits first target(TP1) as above, close part of your position (1/2 or 1/3, that is up to you) and move your SL to Break Even that way it is a free trade now. You next TP could be support resistance zone, nearest round number, high/low of the day, Although i never use this but some peopel use Fib exentions and levels, OR possibly could be just a set amount of twice the amount of SL this way you can have 1:1.5 R:R trade if you hit TPs and TP2 and close 1/2 at each.
  • #72
  • Mar 23, 2012 8:40am Mar 23, 2012 8:40am
Quoting goldsurfer
good calls PP. Please keep posting your charts for us ignorant of this pure trading style Even if after the fact that way I can check and see if I saw what I thought i saw....

cheers
My pleasure. Hopefully you guys got in on the Yen pairs as they soared up nicely to hit (TP1= SL) and (TP2 = 2 x SL) and maybe beyond. The USDCAD went nicely down for about 30 pips but bounced back up agian, so hit TP1 for sure but that is about it.
  • #73
  • Mar 23, 2012 8:54am Mar 23, 2012 8:54am
I am not seeing anything jump out at me as upcoming possible setups, except for USDJPY as it nears previous support level around 82.30-82.40 zone and may possibly setup a long trade... lets watch this one closely. If YOU are seeing anything, please feel free to post.
  • #74
  • Mar 23, 2012 9:53am Mar 23, 2012 9:53am
this pair looking to put in a hammer candle with divergence maybe if it continues in the next 10 minutes.

It is Friday late morning so be cautious
Attached Image (click to enlarge)
Click to Enlarge Name: divergence_gj.jpg Size: 220 KB
  • #75
  • Mar 23, 2012 10:07am Mar 23, 2012 10:07am
Quoting PurePrice
this pair looking to put in a hammer candle with divergence maybe if it continues in the next 10 minutes.

It is Friday late morning so be cautious
yeah, dat a big pin bar.....maybe cut down your trade jus' a tad

cheers
  • #76
  • Mar 23, 2012 10:30am Mar 23, 2012 10:30am
Good afternoon @ all,

What pairs to watch?

Me actually looking at: USD/CHF - it has to sink a little bit more
AUD/USD - it has to rise a little bit more

but on both the RSI looks promising. Also E/U has made a divergence on M5, sitting again at hourly resistance, is also on the screen.

Regards...

Chriss
  • #77
  • Mar 23, 2012 10:53am Mar 23, 2012 10:53am
AJ is the winner in the race to TP1, but EJ and Beast close behind. Another good call by PP. I am getting older and have noticed dementia setting in, but that is no excuse for trading like a moron for the past 5 years
  • #78
  • Mar 23, 2012 11:21am Mar 23, 2012 11:21am
The EJ is not divergence but the AJ i thought looked better than the Beast. Because of the length of the candle I cut my TP1& 2 in half. Demo still as I have never been sharp enough to even spot divergence let alone trade it. But after a few days of practicing this method it's getting easier


cheers and good weekend
  • #79
  • Mar 23, 2012 11:41am Mar 23, 2012 11:41am
Hey,

i'm out on E/U with 10 pips green.

Thanks for the nice system PurePrice!

Good weekend @ all from me too.


Regards...

Chriss
  • #80
  • Mar 23, 2012 12:11pm Mar 23, 2012 12:11pm
Quoting chrissfx

i would look always for previous support and resistance for possible target points. I have attached a H1 chart (TP = gold price label), there you can see the neckline of SHS-pattern, this is a strong support area (TP1). If we break this, we have a broken trendline, where we may can expect a possible bounce and retest (TP2). Equal how the market will go, on this trade i would advise very tight SL as we had a straight upmove the last hours and a continuation is anytime possible.


Hopefully this helps a little bit :-)

Regards...

Chriss
Surely this helps very much. thank you ! just like my previous trade sell on EU . the previous broken resistance was used as support and my TP. it's super effective!

Quoting PurePrice
I generally like to place a first TP at the same amount as my SL. SL is normally a few pips above or below the high/low of the pinbar (or englufing) candle depending hther you are going short or long of course. So that should be eay to do, and will give you a chance to make some money on the trade and would be a 1:1 risk. If you are a trader that would liek to stay in the trade and get more out of it incase it continues in your favour. Then as your trde hits first target(TP1) as above, close part of your position (1/2 or 1/3, that is up to you)...
100% I'd love to follow your management system! indeed you are the greatest guru here to me on explaining such excellent strategy. thank you so much
If you have to make a mistake, make sure it is a new one
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