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EASY H1 trading using divergence and candle sticks

  • #821
  • May 8, 2012 12:55pm May 8, 2012 12:55pm
Quoting Zokynho
yesterday i posted trades so you can look my criteria of entering trades. this is easy and good method just to follow pureprice rules in long run, but if you look on other tf and using good s i r lvls,draw trendlines etc. to see whole picture results will be even better
yesterday you mentioned you only looked at 1h timeframe.
Also you mentioned money management rules that were important but that you could not share

I know that you are only trying to help and it is much appreciated but it is confusing the hell out of me at the moment.

Would you be able to share a detailed break-down of one of the trades from above ie.. how you entered and managed the trade?
I know you use pureprice 1h in the strategy but further info would be great
  • #822
  • May 8, 2012 12:56pm May 8, 2012 12:56pm
Quoting Zokynho
yesterday i posted trades so you can look my criteria of entering trades. this is easy and good method just to follow pureprice rules in long run, but if you look on other tf and using good s i r lvls,draw trendlines etc. to see whole picture results will be even better
Why be so secretive when others are so open to help others master this method.
  • #823
  • May 8, 2012 12:56pm May 8, 2012 12:56pm
hy bluemosaic,

it is hard to me tell you exact entry from my point of view.As i said i use great mm so i can let myself to be more aggresive.i cover my losses with it and have free stress trading.
Watch lower timeframes that will help you alot as Binyamin said

sorry if my english not best

regards
Quoting bluemosaic
Am not sure I do..

Whilst I do not want to stray from the core strategy/rules of this thread, I am intrigued as to what the entry method is that you are using.

For divergence to occur then surely there must be two points on price and two points on the indicator (RSI) between which we observe the divergence. We can use the candles ie.. pin or engulfing to effectively indicate the point at which the second price anchor/point of the divergence is defined.

Any further info would be of interest. As I said, really not looking to stray from core...
  • #824
  • May 8, 2012 1:03pm May 8, 2012 1:03pm
It was valid divergence

Quoting Binyamin
Thanks for sharing. In my opinion I think your GU trade today wasn't a valid divergence.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp usd.gif Size: 18 KB
  • #825
  • May 8, 2012 1:22pm May 8, 2012 1:22pm
you are right bluemosaic that I said yesterday about watching only 1h tf.,but today was looking on smaller tf too.Trading for me is not just have hardcore rules,you have to look outside picture and accommodate to market.sorry for confusing you
Quoting bluemosaic
yesterday you mentioned you only looked at 1h timeframe.
Also you mentioned money management rules that were important but that you could not share

I know that you are only trying to help and it is much appreciated but it is confusing the hell out of me at the moment.

Would you be able to share a detailed break-down of one of the trades from above ie.. how you entered and managed the trade?
I know you use pureprice 1h in the strategy but further info would be great
  • #826
  • May 8, 2012 1:32pm May 8, 2012 1:32pm
because i working with some guys who told me about this and i promise them not to tell,it is our bussiness secret sorry

Quoting don555
Why be so secretive when others are so open to help others master this method.
  • #827
  • May 8, 2012 1:53pm May 8, 2012 1:53pm
Quoting Zokynho
because i working with some guys who told me about this and i promise them not to tell,it is our bussiness secret sorry
Zokynho I was not referring to your mm if its a secret I understand.
It was about your method and how low a time frame do you look at was the answer I was hoping to get 30 min 15min or lower.
  • #828
  • May 8, 2012 1:53pm May 8, 2012 1:53pm
This great post can help you http://www.forexfactory.com/showthre...17#post5280317

regards
  • #829
  • May 8, 2012 2:06pm May 8, 2012 2:06pm
for example look this today trade on eur usd 1st picture is on 1h and we see that divergence forming but we don't know where to enter

on 2nd chart 5min we also see divergence and that was good confirmation for me to enter

Quoting don555
Zokynho I was not referring to your mm if its a secret I understand.
It was about your method and how low a time frame do you look at was the answer I was hoping to get 30 min 15min or lower.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur usd 1h.gif Size: 16 KB
Click to Enlarge Name: eur usd 5min.gif Size: 19 KB
  • #830
  • May 8, 2012 2:13pm May 8, 2012 2:13pm
Thanks Zokynho

Info/link much appreciated. The post above explaining finer entry on 5min chart makes things much clearer.

Please keep posting your trades so that we can all learn and improve together and thanks all for making this a great thread. Am loving this approach to trading - pureprice has done a great job with this thread.

Cheers
  • #831
  • May 8, 2012 2:21pm May 8, 2012 2:21pm
I am really busy this days with trading and do some things privately so maybe cannot post trades in real time and cannot answear right away but will be here to learn with you guys.i tried many strategy on ff factory,many fancy indies but from what i learned PA is most important thing indies are only tools to help you with decision.you have to learn watch price have feeling of it and have KISS principle.

regards
  • #832
  • May 8, 2012 4:25pm May 8, 2012 4:25pm
Quoting Zokynho
I am really busy this days with trading and do some things privately so maybe cannot post trades in real time and cannot answear right away but will be here to learn with you guys.i tried many strategy on ff factory,many fancy indies but from what i learned PA is most important thing indies are only tools to help you with decision.you have to learn watch price have feeling of it and have KISS principle.

regards

Zokynho thanks for sharing your info.
  • #833
  • Edited 10:53pm May 8, 2012 10:35pm | Edited 10:53pm
Quoting Zokynho
It was valid divergence
........ok you clearly do not understand why divergence happens.
Riding the order flow
  • #834
  • Edited May 9, 2012 12:19am May 8, 2012 11:50pm | Edited May 9, 2012 12:19am
I entered USDCAD when there was no divergence. In this case it was not easy to tell if there is a divergence if you don't look carefully.

Anyway the market went with my trade and I exit half at my 1st TP. Second is running.(That is 0.5% in my demo account, 2% so far. This trade doesn't count though its a bad one)

PS: If you were wondering why I don't draw my TL from the wicks, I have already explain it.

Update: SL at break even hit for my 2nd trade. There was a divergence in AU at the same time, I didn't take it because the bearish trend is string.
Attached Image (click to enlarge)
Click to Enlarge Name: (no subject) - binyaminemanuel@gmail.jpg Size: 155 KB
Riding the order flow
  • #835
  • May 9, 2012 1:18am May 9, 2012 1:18am
Can you clarify this please?

Quoting Binyamin
........ok you clearly do not understand why divergence happens.
  • #836
  • May 9, 2012 1:23am May 9, 2012 1:23am
Quoting Zokynho
Can you clarify this please?
http://www.forexfactory.com/showthre...02#post5647302
For divergence to be valid there must be atrend followed by deceleration of price speed.
Riding the order flow
  • #837
  • May 9, 2012 2:27am May 9, 2012 2:27am
What would be the stochastic setting for this method.
  • #838
  • Edited 4:05am May 9, 2012 2:59am | Edited 4:05am
USDJPY H1 there is a divergence happening at a previous price swing point. However the The daily show a very strong bearish trend. and a bearish flag.

Set my buy order above the pin.

Update: Stopped for -1% on my demo.
Attached Image (click to enlarge)
Click to Enlarge Name: (no subject) - binyaminemanuel@gmail.jpg Size: 145 KB
Riding the order flow
  • #839
  • May 9, 2012 3:12am May 9, 2012 3:12am
Hi all,

I did this little pic to help clarify divergences. Basically divergence is when price is telling a different story to the indicator. So there are a few different types of divergence. Some of us are only seeing regular and some also hidden, until recently I didn't know what continuing was but have done some study and this is what I have learned.

Regular divergence happens at the END of a trend. So it is counter trend trade and can go against you for a while. It (RSI) and other indicators are basically telling us money is not coming in as strongly as it was. Indicator is diverging from price. This usually happens at resistance/support, round numbers, pivots, when news is imminent etc. Its saying people are taking profit here, exiting the market, taking the opposite trade etc. So it is basically predictive of what the big boys are/may be doing. Of course it can go against us and take sl but it seems to me the RSI is giving us an indication of what may happen. Trend is slowing and may reverse in the near future. This is why PP says need candle pattern and resistance/support as extra confirmation. Add divergence to candle pattern and support/resistance and it a safer trade.

Hidden divergence is when there was a trend and a retrace, the retrace does not go as high as previous highs, but the indicator shows a new high so this is telling us something is not right, the divergence is indication the current retrace may come to an end and the original/overall trend may resume. In my chart example hidden divergence was followed by regular divergence.

Continuing divergence, the guy i learnt it from says, can only be seen on MACD, (his opinion I don't know any different). He explains that price continues to move up but the MACD continues to slope down. It has to have some peaks and valleys and the peaks get smaller, also the histogram stays on the same side. Personally this kind of divergence is annoying as sl will be taken out until it finally makes its move down.

Hope I haven't confused people more but if you look at the chart i have marked some of the divergences, it is a 15m chart but has examples of these 3 divergence types. Colour coded for ease of recognition.

Also there is a lot of "debate" about using wicks or close, I understand the principal of using close but I find the wicks easier to draw and see and trade. If the divergence is not clear and I am unsure I may draw the close to check but most often the divergence is there with either close or wicks, it just changes the angle. Personal preference seems the way to go with this.

Hope this helps to understand the different divergences.

Regards,
Julie
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd all div.jpg Size: 99 KB
  • #840
  • May 9, 2012 3:24am May 9, 2012 3:24am
Quoting Binyamin
USDJPY H1 there is a divergence happening at a previous price swing point. However the The daily show a very strong bearish trend. and a bearish flag.

Set my buy order above the pin.
Why is your rsi setting at 6 and not seven.
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