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EASY H1 trading using divergence and candle sticks

  • #81
  • Mar 23, 2012 2:34pm Mar 23, 2012 2:34pm
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)...
What is the difference between locking profits and closing part of your position then move S/L to BE?
With God all things are possible.
  • #82
  • Mar 23, 2012 4:07pm Mar 23, 2012 4:07pm
Quoting Dehyah
What is the difference between locking profits and closing part of your position then move S/L to BE?

same thing, two different names.
  • #83
  • Mar 23, 2012 7:42pm Mar 23, 2012 7:42pm
Quoting PurePrice
same thing, two different names.
I read something about 'Scale in and out' on Babypips which explained about closing part of your position and moving the S/L to BE.Thanks though.
With God all things are possible.
  • #84
  • Mar 23, 2012 9:10pm Mar 23, 2012 9:10pm
Nice one!
  • #85
  • Mar 25, 2012 5:54pm Mar 25, 2012 5:54pm
Hi

I see a little divergence on the rsi on the daily chart of EurAud.

I think it will be good to post the trade setups so that other traders can look, take the trade or comment either way.

Good system, Pure Price.

Comments Welcome.

thanks
  • #86
  • Mar 26, 2012 3:40am Mar 26, 2012 3:40am
Today Gold During Sydney season on 5m had div + a perfect form of evening star!
too bad i was on my bed sleeping like a cat hahaha!
If you have to make a mistake, make sure it is a new one
  • #87
  • Mar 26, 2012 7:06am Mar 26, 2012 7:06am
Just downloaded another useful indicator for this simple trading strategy. Attached along with.
Attached File(s)
File Type: mq4 MC-PB-IB.mq4   10 KB | 1,127 downloads
  • #88
  • Mar 26, 2012 9:08am Mar 26, 2012 9:08am
Hi,

nice setup on E/U! We have important US News right now, so i will wait for some time and then Jump in if possible...

Attached Image (click to enlarge)
Click to Enlarge Name: divergence-2603.gif Size: 11 KB



I hate these sitations :-)

Regards...

Chriss
  • #89
  • Mar 26, 2012 9:20am Mar 26, 2012 9:20am
Nice Posting, Chris.

Postings like this really helps.

Some times, there is or there is no divergence depending on your drawing skills if the divergence is very small. Is there any customizable RSI divergence indicator?

I already have the MACD ones and the one posted in this forum. the one posted does not draw the divergence lines.

An indicator that can draw the divergence will be great.

thanks
  • #90
  • Mar 26, 2012 9:21am Mar 26, 2012 9:21am
Quoting chrissfx
Hi,

nice setup on E/U! We have important US News right now, so i will wait for some time and then Jump in if possible...

Attachment


I hate these sitations :-)

Regards...

Chriss
Hey Chriss, good eye

This is the only pair I was seeing also. But looks like price action did not fall below the nice pinbar we had on the 9:00 O'clock (EST) candle.. too bad cuz that would have been a nice setup MAYBE we will get another pinbar here and still have a chance to enter short on a tweezer trade setup like some people like to call it
  • #91
  • Mar 26, 2012 9:35am Mar 26, 2012 9:35am
Hey,

@ forexnubie: if you're not that good in spotting the divergence, then simply compare the peaks and mark them with vertical lines. They all have a value and then it's obvious. It will not take much screen time and then you will find them automtically.

I'm in. Why? Jes, there is no pinbar on H1 but we have divergence on M5 too. Second, we need to retest broken resistance (breakout) on hourly timeframe.

So,

Entry: 1.33295
SL: 1.3349
TP: 1.2990

Risk:Reward:Ratio -- 1:2

(additional the div on M5)

Attached Image (click to enlarge)
Click to Enlarge Name: divergence5-2603.gif Size: 12 KB


Regards...

Chriss

Edit: Sorry, there is a pinbar on H1, but as we have div on M5 i entered this way :-)
  • #92
  • Mar 26, 2012 10:21am Mar 26, 2012 10:21am
Quoting chrissfx
Hey,

@ forexnubie: if you're not that good in spotting the divergence, then simply compare the peaks and mark them with vertical lines. They all have a value and then it's obvious. It will not take much screen time and then you will find them automtically.

I'm in. Why? Jes, there is no pinbar on H1 but we have divergence on M5 too. Second, we need to retest broken resistance (breakout) on hourly timeframe.

So,

Entry: 1.33295
SL: 1.3349
TP: 1.2990

Risk:Reward:Ratio -- 1:2

(additional the div on M5)

Attachment

Regards......

This is OK for you to enter if you are using M5 charts, however, you are entering based on M5 timeframe, not H1 timeframe, just so that readers are aware of this and are not confused.

for this Short setup on EU. I would normally wait for the H1 timeframe to form a bearish enguling or pinbar candle and then enter 5 pips or so below the low of that candle given that we have divergence with RSI, and RSI reading was above 70 level (thereby signalling possible overbought level).
  • #93
  • Mar 26, 2012 10:44am Mar 26, 2012 10:44am
I'm out right now with +7 pips. Market runs sideways and in 20 minutes Mr. Draghi is speaking.

Looks like market is waiting for these news, as we are running sideways now since nearly 2 hours.

I don't want to raise my stop, so out and waiting for the news.


PurePrice, have you put a pending order under the candle? Maybe the news will send it fast down.

Greetings

Chriss
  • #94
  • Mar 26, 2012 10:48am Mar 26, 2012 10:48am
Quoting chrissfx
I'm out right now with +7 pips. Market runs sideways and in 20 minutes Mr. Draghi is speaking.

Looks like market is waiting for these news, as we are running sideways now since nearly 2 hours.

I don't want to raise my stop, so out and waiting for the news.


PurePrice, have you put a pending order under the candle? Maybe the news will send it fast down.

Greetings

Chriss
No, I dont have a pending order. I am waiting to see candle formation on this hourly candle first .
  • #95
  • Mar 26, 2012 1:19pm Mar 26, 2012 1:19pm
Thank you for your reply, Pure Price.

So, to clear it up, we just wait for a bearish/bullish engulfing, pinbar or an inside bar, then look for divergence in the RSI, preferable 30/70 level, and enter the trade in the direction of the divergence of the oscillator?

Is there any other things that we had to watch for? For example the EU showed a little divergence on 1 hour today, a few candles ago. The price made a high but RSI was almost flat. Was this a valid signal?

I like RSI than MACD. Is MACD divergence any better?

thanks, once again for a good system, Pure Price.

thanks
  • #96
  • Mar 26, 2012 2:09pm Mar 26, 2012 2:09pm
Quoting forexnubie
Thank you for your reply, Pure Price.

So, to clear it up, we just wait for a bearish/bullish engulfing, pinbar or an inside bar, then look for divergence in the RSI, preferable 30/70 level, and enter the trade in the direction of the divergence of the oscillator?

Is there any other things that we had to watch for? For example the EU showed a little divergence on 1 hour today, a few candles ago. The price made a high but RSI was almost flat. Was this a valid signal?

I like RSI than MACD. Is MACD divergence any better?

thanks, once again...
Your understanding is correct.

The signal was a valid signal on EU, but we didnot get price action follow thru below the pinbar candle to trigger a short trade. Eventhough the RSI was flat, the price itself made a higher high, which means divergence between the price and the oscillator.

If you can make MACD work for you then that is up to you, but basic divergence is the same, and the idea is exactly the same. What I dont know about MACD is where the indicator might be considered overbought or oversold as with RSI those levels are clearly defined. Some traders use 70/30, some use 80/20 or whatever you wish with RSI. With MACD, i just don't know where that would be
  • #97
  • Mar 26, 2012 3:09pm Mar 26, 2012 3:09pm
It is certainly the end of the trading day here in NY session, but there might be a good setup coming up on USDCAD (maybe save it till Sydney/oyko session) around 0.9900. Watch this level closely for a possibility of a Long trade setup, as this level is not only a pysch round number but also it is where the hourly rising trendline hits. So, I expect a reaction around this level. If we get a pinbar and divergence there too, it would be like AAA setup
  • #98
  • Edited 3:37pm Mar 26, 2012 3:13pm | Edited 3:37pm
Well, another pair of possible setups at end of day here in NY. The RSI on those two pairs has been well over the 70 level, and it dropped and now going back up to maybe a lower peak than the previous one, while the price itself is looking like it will put in a higher high, and thereby possibly creating divergence. If we end up with a nice bearish candle formation and divergence, we may see a short trade setup on those pairs in upcoming Sydney/Tokyo.

Good luck to all.
  • #99
  • Mar 26, 2012 3:15pm Mar 26, 2012 3:15pm
Thank you for the reply.

I like the RSI, somehow MACD does not work for me.

On USDCAD, what time frame we have to look for?

Thanks for posting upcoming trades, Pure Price!
  • #100
  • Mar 26, 2012 3:23pm Mar 26, 2012 3:23pm
Pure Price,

You are doing great!!!

Again just to confirm, when you say end of the day, you mean daily charts or what time frame should we be looking out for, on AUDUSD AND NZDUSD?

Once again, it is very simple and easy to follow!

thanks
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