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Attachments: EASY H1 trading using divergence and candle sticks
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EASY H1 trading using divergence and candle sticks

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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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
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
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.
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.
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
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
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'
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.
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
Follow the leader i guess....see what happens
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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.
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.
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
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.
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.
@ 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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hi all
curious to know if this was/is a valid setup
a few bearish candles in there too now
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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.
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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