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EASY H1 trading using divergence and candle sticks

  • #101
  • Mar 26, 2012 3:31pm Mar 26, 2012 3:31pm
Quoting forexnubie
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!
I use H1 charts for this method only. So, if I dont explicitly mention timeframe, I mean H1.
  • #102
  • Mar 26, 2012 3:33pm Mar 26, 2012 3:33pm
Quoting forexnubie
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
I mean H1 again. sorry about the confusion with "end of day" phrase. I just meant it is the end of trading session in NY not the daily candle ... my apologies
  • #103
  • Mar 26, 2012 4:08pm Mar 26, 2012 4:08pm
Quoting PurePrice
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.
Well, it appears that we do have a short setup on AU after the close of the 16:00 (EST) candle as expected. The price went back up to the same exact pip as previous peak creating a possible doubletop at 1.0544 and headed down to form a pinbar, while the RSI headed down, after reaching a value of around 85 (overbought). The only issue I have with this setup is that is happening now after 5pm EST and markets are pretty much dead now. But in terms of the ingredients of our trade setup, this qualifies very well and we would trigger a short trade below say 1.0530.
  • #104
  • Edited 4:19pm Mar 26, 2012 4:13pm | Edited 4:19pm
Quoting PurePrice
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
This one is playing nicely for now. As expected the price went down and headed toward 0.9900 while the RSI slightly went up (while still below 30 in oversold territory) creating a divergence for now, but we still need to see a bullish candle formation on the price to consider this a setup, as that is one important element of our trade setup. Will be looking for a bullish engulfing on the 17:00 o'clock candle for now

Here is the chart, with trendline and divergence drawn
Attached Image (click to enlarge)
Click to Enlarge Name: divergence_uc.jpg Size: 222 KB
  • #105
  • Mar 26, 2012 5:26pm Mar 26, 2012 5:26pm
Hi Pure Price,

Thanks for the update on AUD USD AND NZD USD pairs.

The divergence was little, but I took the trade.

Will keep you posted.

Thanks for the update!

Pure Price, again, thanks for taking the initiative to post it.
  • #106
  • Mar 26, 2012 5:35pm Mar 26, 2012 5:35pm
Hi Traders,

I think a divergence could be setting up on NZD JPY on the hourly chart.

thanks
  • #107
  • Edited 9:14pm Mar 26, 2012 9:02pm | Edited 9:14pm
setting up for a short on H1 .. Why?

1- Price made a a double top (same peak as previous) and put in a Pinbar candle formation signalling bearish bias.
2- RSI made a lower high, therefore we have divergence.
3- RSI was over the 70 level, therefore we have oscillator in overbought territory.
4- We now will place a pending order a few pips just below the low of the pinbar, as marked by the magenta rectangle in the chart below.
Attached Image (click to enlarge)
Click to Enlarge Name: divergence_gu.jpg Size: 215 KB
  • #108
  • Mar 26, 2012 9:17pm Mar 26, 2012 9:17pm
i like to user AO as my indicator to detect DIV..and it also give me a signal whether it is a retrace signal or reversal trend signal..
  • #109
  • Mar 26, 2012 9:27pm Mar 26, 2012 9:27pm
Quoting forexnubie
Hi Pure Price,

Thanks for the update on AUD USD AND NZD USD pairs.

The divergence was little, but I took the trade.

Will keep you posted.

Thanks for the update!

Pure Price, again, thanks for taking the initiative to post it.

You are most welcome. I hope you find some of this stuff helpful in your trading.

the AU trade is shaping up nicely I think and now we have a very similar, almost identical setup on GU.
  • #110
  • Edited 5:17am Mar 27, 2012 4:36am | Edited 5:17am
Quoting PurePrice
You are most welcome. I hope you find some of this stuff helpful in your trading.

the AU trade is shaping up nicely I think and now we have a very similar, almost identical setup on GU.
Friendly forms Detected!. Let's all of us pray for the engulf!. Good luck to everyone!

http://i42.tinypic.com/330bvh5.jpg
If you have to make a mistake, make sure it is a new one
  • #111
  • Mar 27, 2012 6:59am Mar 27, 2012 6:59am
Quoting Komugi
Friendly forms Detected!. Let's all of us pray for the engulf!. Good luck to everyone!

http://i42.tinypic.com/330bvh5.jpg
Good work Kumugi,

The 5:00 EST candle formed a nice pinbar and we had divergence in overbought area above 70 level, making this a good short setups Looking at the price now, this is a +20 pip trade if you actually took the trade when it triggered.
  • #112
  • Edited 7:17am Mar 27, 2012 7:05am | Edited 7:17am
Well, due to the bad habit of sleeping I missed many trade setups on the major pairs. Pretty much at the same time as the setup that Kumogi mentioed above at the 5:00 (EST) O'clock candle. Again, good work Kumogi for alerting readers to the setup, and the many other setups that were happening at the same time if you were to check the other currency pairs. See the GU chart below.

It would be great, if whoever sees a setup coming up can alert the readers here to watch out for it, especially during Frankfort/London, as I am sleeping during these times. Thanks in advance.

Good luck trading today
Attached Image (click to enlarge)
Click to Enlarge Name: divergence_gu.jpg Size: 219 KB
  • #113
  • Mar 27, 2012 7:12am Mar 27, 2012 7:12am
Quoting PurePrice
Good work Kumugi,

The 5:00 EST candle formed a nice pinbar and we had divergence in overbought area above 70 level, making this a good short setups Looking at the price now, this is a +20 pip trade if you actually took the trade when it triggered.

1.0500 might be a strong area to break. Consider locking in some profit and moving to BE, just in case this one reverses on you.
  • #114
  • Mar 27, 2012 7:15am Mar 27, 2012 7:15am
Aud/Usd

I see divergence on the daily(long trade) .... not sure what to do....any thoughts?
  • #115
  • Mar 27, 2012 7:27am Mar 27, 2012 7:27am
Quoting mark cooper
Aud/Usd

I see divergence on the daily(long trade) .... not sure what to do....any thoughts?
On MY charts with daily close at 12 midnight EST, here is what I see. Your charts maybe different since brokers have different closing time for the daily candle. If you would like, post your chart and I can try to comment on it later on as I am leaving for work soon.
Attached Image (click to enlarge)
Click to Enlarge Name: divergence_au.jpg Size: 208 KB
  • #116
  • Mar 27, 2012 7:30am Mar 27, 2012 7:30am
Quoting mohzulmd
i like to user AO as my indicator to detect DIV..and it also give me a signal whether it is a retrace signal or reversal trend signal..

Can you elaborate and show charts?
  • #117
  • Mar 27, 2012 7:53am Mar 27, 2012 7:53am
Quoting PurePrice
me if you were to check the other currency pairs. See the GU chart below.

It would be great, if whoever sees a setup coming up can alert the readers here to watch out for it, especially during Frankfort/London, as I am sleeping during these times. Thanks in advance.

Good luck trading today
It's just my pleasure! i took the trade after the first confirmation candle. out with 25+ SL to TP. 1:1. Absolutely stress free! thanks to you too for the powerful system!
If you have to make a mistake, make sure it is a new one
  • #118
  • Mar 27, 2012 7:58am Mar 27, 2012 7:58am
Just wanted to show my AUDUSD trade from last night. Being in the US, I took the short trade on an earlier pin bar. The first half of the trade went to TP1 within a few hours. I moved the second half's SL to break even and let it run. After a few more bars, though, it was apparent it was headed for the stop, so I closed it out manually for a small profit. This was my first trade with this system and was on a live account. Made a bit over 1.7% on the trade.

PurePrice, just wanted to get your thoughts on pulling the trigger right there... thanks again for the simple but effective system.

Cheers,
Scott
Attached Image (click to enlarge)
Click to Enlarge Name: audusd.gif Size: 13 KB
Prices are never too high to begin buying or too low to begin selling.
  • #119
  • Mar 27, 2012 9:00am Mar 27, 2012 9:00am
Quoting thehenryfam
Just wanted to show my AUDUSD trade from last night. Being in the US, I took the short trade on an earlier pin bar. The first half of the trade went to TP1 within a few hours. I moved the second half's SL to break even and let it run. After a few more bars, though, it was apparent it was headed for the stop, so I closed it out manually for a small profit. This was my first trade with this system and was on a live account. Made a bit over 1.7% on the trade.

PurePrice, just wanted to get your thoughts on pulling the trigger right there... thanks...
This was done correctly on the first pinbar last night. That is the same trade I mentioned at the end of NY closing yesterday. Good work Scott and congrats on the 1.7%
  • #120
  • Mar 27, 2012 9:04am Mar 27, 2012 9:04am
although it is very early in the 10:00 oclock candle, we already have overbought RSI levels, and it is looking like the RSI is not making the higher high that teh actualy prices have made, so we may have divergence here. So, we just need a bearish candle here, either pinbar or bearish engulfing to setup a short trade, and then we will trigger if price actions follows through below those candles (IF we get them). Watch those two pairs closely for the next hour to see how the candle will close

I will be back in an hour for an update if I can ...
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