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EASY H1 trading using divergence and candle sticks

  • #121
  • Mar 27, 2012 9:16am Mar 27, 2012 9:16am
IF anyong is holding AU long position still, consider taking profits here as it hits the rising trendline. See chart where the arrow is.
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  • #122
  • Mar 27, 2012 9:34am Mar 27, 2012 9:34am
Hi

Thanks for the update.

Just a clarification.

Consider taking profits because it hit the trendline? Bullish hammer on the trendline, is it not considered as a bullish formation? Buy chance

or is it due to RSI bearish divergence, that takes precedence over the bullish hammer on the trendline? Sell chance

Buy or sell here?

thanks
  • #123
  • Mar 27, 2012 9:38am Mar 27, 2012 9:38am
Hi Pure Price,

Love those setup updates. Gives us more confidence and going to try it after the bearish engulfing or hammer forms.

Thanks!

Once again, these live updates are excellent!

thanks
  • #124
  • Mar 27, 2012 9:43am Mar 27, 2012 9:43am
I think he meant to say "If anyone is holding AU short position" rather than "long position". It's probably heading back up from here.

Scott


Quoting forexnubie
Hi

Thanks for the update.

Just a clarification.

Consider taking profits because it hit the trendline? Bullish hammer on the trendline, is it not considered as a bullish formation? Buy chance

or is it due to RSI bearish divergence, that takes precedence over the bullish hammer on the trendline? Sell chance

Buy or sell here?

thanks
Prices are never too high to begin buying or too low to begin selling.
  • #125
  • Mar 27, 2012 10:02am Mar 27, 2012 10:02am
Quoting thehenryfam
I think he meant to say "If anyone is holding AU short position" rather than "long position". It's probably heading back up from here.

Scott
You are correct Scott.

I apologize for that mistake. The AU trade was SHORT, not long. and hiting the trendline would likely cause the price to bounce UP from there and this is a good place to lock in profits on a SHORT position that we were holding. I get a minute or two at work to update and while in a hurry i screwed up .. sorry about that.
  • #126
  • Mar 27, 2012 10:03am Mar 27, 2012 10:03am
Quoting PurePrice
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...
Well, they certainly formed a bearish engulfing candles here and that gives us a nice short setup
  • #127
  • Mar 27, 2012 10:52am Mar 27, 2012 10:52am
Quoting PurePrice
Well, they certainly formed a bearish engulfing candles here and that gives us a nice short setup
While we have the setup, we do not have a trigger on EJ yet and it is getting to the lunch hour in NY. GJ looks like it has already hit the trigger point but she is retracing back up again. Hopefully GJ will dive soon but make sure you have your SL in place just in case she keeps going up
  • #128
  • Mar 27, 2012 11:54am Mar 27, 2012 11:54am
Hi Pure Price,

Can you explain on what trigger you are mentioning about on EuroYen?

There was bearish engulfing candle and there was divergence in the RSI.

What else we require? Are we missing something?

I thought that was all to take the trade.

Please explain.

Once again, Pure Price, thank you for all help.

thanks'
  • #129
  • Mar 27, 2012 1:44pm Mar 27, 2012 1:44pm
Quoting forexnubie
Hi Pure Price,

Can you explain on what trigger you are mentioning about on EuroYen?

There was bearish engulfing candle and there was divergence in the RSI.

What else we require? Are we missing something?

I thought that was all to take the trade.

Please explain.

Once again, Pure Price, thank you for all help.

thanks'
That is what we need for a short setup. You forgot to mention tht RSI had to be in overbought level above 70 too BUT We still need the price to follow through and actually go below (I like about 3-5 pips below) the low of the engulfing candle. That is the trigger point. In the case of EJ, price never went below the bearish engulfing candle, and thus there was no trade trigger.
  • #130
  • Mar 27, 2012 1:53pm Mar 27, 2012 1:53pm
Quoting porfirio
sorry kamugi ... is that I am entering the forum, which is why you had not read

for you friend

Hi Porfiro,

could you describe your system ? Especially which TF (1H or higher ?), entry and TP position.

Best regards from Poland
  • #131
  • Mar 27, 2012 2:04pm Mar 27, 2012 2:04pm
Follow the leader i guess....see what happens
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  • #132
  • Mar 27, 2012 2:17pm Mar 27, 2012 2:17pm
All of these questions have been answered. Just read the thread from the beginning.

Scott


Quoting Moritz
Hi Porfiro,

could you describe your system ? Especially which TF (1H or higher ?), entry and TP position.

Best regards from Poland
Prices are never too high to begin buying or too low to begin selling.
  • #133
  • Mar 27, 2012 2:19pm Mar 27, 2012 2:19pm
PurePrice,

I see EJ has still yet to trigger, and it's been over four bars now. I still have a pending trade set. When do you no longer consider it a valid trade and remove your pending orders? After a certain number of bars or when the price starts to clearly move in the opposite direction or something else?

Thanks,
Scott

Quoting PurePrice
That is what we need for a short setup. You forgot to mention tht RSI had to be in overbought level above 70 too BUT We still need the price to follow through and actually go below (I like about 3-5 pips below) the low of the engulfing candle. That is the trigger point. In the case of EJ, price never went below the bearish engulfing candle, and thus there was no trade trigger.
Prices are never too high to begin buying or too low to begin selling.
  • #134
  • Mar 27, 2012 2:26pm Mar 27, 2012 2:26pm
PurePrice,

I also have a question. On my charts, all of the engulfing candles on the Yen pairs were pretty large. Is there a length of candle that would discourage you from taking a trade?

Thanks.

Carol
  • #135
  • Mar 27, 2012 3:37pm Mar 27, 2012 3:37pm
Quoting thehenryfam
PurePrice,

I see EJ has still yet to trigger, and it's been over four bars now. I still have a pending trade set. When do you no longer consider it a valid trade and remove your pending orders? After a certain number of bars or when the price starts to clearly move in the opposite direction or something else?

Thanks,
Scott
If we still have divergence it is still valid, although i dont like to enter at end of NY session. I would watch price action in Tokyo to see how that works. But generally 3-4 bars after setup is more than enough for a trigger, if not, let it go and look for something else.
  • #136
  • Mar 27, 2012 4:16pm Mar 27, 2012 4:16pm
Quoting Eureka
PurePrice,

I also have a question. On my charts, all of the engulfing candles on the Yen pairs were pretty large. Is there a length of candle that would discourage you from taking a trade?

Thanks.

Carol
Very valid question. Usually when there is a large bar, it will most of the time retrace a bit then go back to original direction. So, if we put in a large bearish candle like we did with yen pair, i would expect it to retrace a bit before continuing which happened in EJ. However, with most pairs more than 40 pips is getting too risky. However with GJ i would say 50 pips is good as this pair moves more pips than any other I watch.
  • #137
  • Mar 27, 2012 5:20pm Mar 27, 2012 5:20pm
@ PurePrice, I've dragged this from my chart it shows a move from the other day on EURUSD, notice the red lines drawn on, would you call this divergence?
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  • #138
  • Mar 27, 2012 5:30pm Mar 27, 2012 5:30pm
hi all
curious to know if this was/is a valid setup
a few bearish candles in there too now
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  • #139
  • Mar 27, 2012 9:30pm Mar 27, 2012 9:30pm
GDR3k, I could be wrong here, and we definitely should have PP weigh in on this, but I don't typically draw my trend and divergence lines over such long periods (5 days) on an hourly chart. Seems if you go out that far, the information is probably less useful.

Scott

Quoting GDR3k
@ PurePrice, I've dragged this from my chart it shows a move from the other day on EURUSD, notice the red lines drawn on, would you call this divergence?
Prices are never too high to begin buying or too low to begin selling.
  • #140
  • Mar 27, 2012 9:42pm Mar 27, 2012 9:42pm
Heads-up on possible long trade: AUDCAD

Slight divergence under the 30 level and a possible bullish engulfing.

Scott
Prices are never too high to begin buying or too low to begin selling.
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