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EASY H1 trading using divergence and candle sticks

  • #1,201
  • Jun 23, 2012 11:54pm Jun 23, 2012 11:54pm
Quoting fantom
??????????????????
do you ask spotting divergences or drawing trendline.
if you mean identifying there are indicators.in addition you can do it manually.
there are lots of sources in FF and internet


this is pureprice chart. just wondering how can i draw those lines to note the divergences. do we have any indicators for that?

http://www.forexfactory.com/attachme...1&d=1332207977
  • #1,202
  • Edited 7:23am Jun 26, 2012 7:09am | Edited 7:23am
Description of drawing short line is available on FF:

Forums > Platform Tech > How do you draw a short "Trend Line" on MT4 ?

or try direct link: http://www.forexfactory.com/showthread.php?t=40810

If you look through the history of this thread you can also find some indi-s.
  • #1,203
  • Jun 26, 2012 7:35am Jun 26, 2012 7:35am
Possible long trade (counter trade). Waiting for candle confirmation..

Attached Image (click to enlarge)
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  • #1,204
  • Jun 26, 2012 7:37am Jun 26, 2012 7:37am
Quoting whydak
Possible long trade. Waiting for candle confirmation

Attachment
Also waiting...

Olu
If you think you can or cannot do it you are correct
  • #1,205
  • Jun 26, 2012 8:05am Jun 26, 2012 8:05am
Quoting whydak
Possible long trade (counter trade). Waiting for candle confirmation..

Attachment

I'm in but on usd/jpy... very similar trade

regards
  • #1,206
  • Jun 26, 2012 10:29am Jun 26, 2012 10:29am
Quoting icarusfx
I'm in but on usd/jpy... very similar trade

regards
out for a few pips... way to slow for me
  • #1,207
  • Edited 4:18am Jun 27, 2012 3:45am | Edited 4:18am
Good day all - really great to see increased activity. I work full time and want to quit my day job one day and make a living from trading.

I would really apprecate feeedback from the dedicated contributors to this thread. How much time do you put into trading and for those who are doing it full time, how much preparation did you do prior to being full time.

K
  • #1,208
  • Jun 27, 2012 5:02am Jun 27, 2012 5:02am
Quoting MyKairos
Good day all - really great to see increased activity. I work full time and want to quit my day job one day and make a living from trading.

I would really apprecate feeedback from the dedicated contributors to this thread. How much time do you put into trading and for those who are doing it full time, how much preparation did you do prior to being full time.

K
Hi there,

IF you just trade the higher TF like from 1D and above, you can still keep your day job and still do really well in trading. Also, some people may be full time traders but became one by accident. I do contract work so have learnt how to trade on the hourly TF when I am not working and have also learnt how to Trade the 1D TF when I am working. So there you have it.

You just have to want it badly make a change and start learning to analyse the 1D timeframe charts. Look left at support and rsistance - structure leaves clue all the time. Trade those resistance and support points and it helps if you know Fibbo retracement and extension tools. You will be amazed how they all fit in if you start studyung them. With 1D time frames, depending on how good and quick you are at market analysis, you can spend just about 15 minutes to 30 minutes a day on your chart mark support resistance levels, draw trend lines look for divergences and set your pending and stop loose orders and off you go till the end of the day. Look at your charts 12 hours later and leave the market to play out. Demo this strategy for a few months and you will learn alot before you go live. That is how I do it and one trade can run for 3 days to a week and you can come home with 100 to 400 pips. SL will normally be from 50 - 70 pips. Draw Trend lines and most of all PLAN YOUR TRADES AND STICK TO A PLAN.

Use good MM and you will be profitable. Only have one trade open at a time till you have broken even before thinking of opening another trade. Trust me use market structure, fibbo tools, trend lines, support resistance and do not micro manage your trades. Set up your trades or pending orders and LEAVE IT ALONE to play out. Do it a few times and make some amendments. THAT IS IT BUDDY. Put in the work, leave out robbots or EA's do everthing manaully before your consider EA's or robbots. This will train your mind and your sixth sence to trade in the Zone. Also read some forex books too.

My Two Pips worth.
Born to rule my Economic World and Make a Difference!
  • #1,209
  • Jun 27, 2012 7:43am Jun 27, 2012 7:43am
Thanks for the feedback sharemaster 2.

Much appreciated
  • #1,210
  • Jun 27, 2012 8:30am Jun 27, 2012 8:30am
Quoting MyKairos
Good day all - really great to see increased activity. I work full time and want to quit my day job one day and make a living from trading.

I would really apprecate feeedback from the dedicated contributors to this thread. How much time do you put into trading and for those who are doing it full time, how much preparation did you do prior to being full time.

K

I was trading a couple of years before I was asked to trade managed accounts for a firm in europe... did it for a bit but they were insistent on churning the accounts over (not really my style lol) I saw I trader blow 500k in a couple of days... anyways I trade when I want as I run a business already. It suits me down to the ground :oD

I'd agree with sharemaster... good way to start or if it works for you stay!

kind regards
  • #1,211
  • Jun 27, 2012 9:44pm Jun 27, 2012 9:44pm
Quoting whydak
Description of drawing short line is available on FF:

Forums > Platform Tech > How do you draw a short "Trend Line" on MT4 ?

or try direct link: http://www.forexfactory.com/showthread.php?t=40810

If you look through the history of this thread you can also find some indi-s.


thanks whydak! (:
  • #1,212
  • Jun 28, 2012 12:08am Jun 28, 2012 12:08am
Quoting MyKairos
Good day all - really great to see increased activity. I work full time and want to quit my day job one day and make a living from trading.

I would really apprecate feeedback from the dedicated contributors to this thread. How much time do you put into trading and for those who are doing it full time, how much preparation did you do prior to being full time.

K
Thanks icarusfx
  • #1,213
  • Jun 30, 2012 12:02pm Jun 30, 2012 12:02pm
Hello everyone

Thankyou very much for starting such an interesting thread. I've only just started reading the thread so I must apoligies first incase I repeat questions what have already been answered.

I am new at this and I am doing alot of learning and research before I go live.

Could anyone tell me when your drawing your lines to spot divergence on your charts and RSI how do you know which side of the RSI and candlestick you start from. Example how do you know when you start drawing lines from the top of the candlestick and when do you start plotting them from below?

Does the RSI setting have to be 7 ?

From the memebers who are running this system, what is your average win/loss ratio?

Thankyou very much
  • #1,214
  • Jun 30, 2012 2:59pm Jun 30, 2012 2:59pm
Quoting sandy11
Hello everyone

Thankyou very much for starting such an interesting thread. I've only just started reading the thread so I must apoligies first incase I repeat questions what have already been answered.

I am new at this and I am doing alot of learning and research before I go live.

Could anyone tell me when your drawing your lines to spot divergence on your charts and RSI how do you know which side of the RSI and candlestick you start from. Example how do you know when you start drawing lines from the top of the candlestick and when do you...
Hi Sandy,

Yes, you are very new indeed to forex from the sort of questions you asked. Not a problem, we all started from some where too.

First, you need to open a demo account and start trading what ever you think is right, do that for a while and you will start knowing where and what to look for. You have to put in the work Bro, no short cuts here at all. Hope you have been on baby pips if not you need to go to school on the site. Most poeple started from there. Also, stick to one strategy as you can easily be jumping from strategy to the next for months and still be no where. Read forums, read articles and read books. Yes, it is not work in the park at all. Wish you all the best. Look webinners to attend all this will develope you in time.

My two pips worth.
Born to rule my Economic World and Make a Difference!
  • #1,215
  • Jul 1, 2012 2:07am Jul 1, 2012 2:07am
Quoting sharemaster2
Hi Sandy,

Yes, you are very new indeed to forex from the sort of questions you asked. Not a problem, we all started from some where too.

First, you need to open a demo account and start trading what ever you think is right, do that for a while and you will start knowing where and what to look for. You have to put in the work Bro, no short cuts here at all. Hope you have been on baby pips if not you need to go to school on the site. Most poeple started from there. Also, stick to one strategy as you can easily be jumping from strategy to the next...
Thankyou for responding to my post,
I'm sorry if I come across like a novice but ive been trying to take that much information in I am getting confused. There is so much to learn and understand.

Now that Ive slept a bit hahah I can see if the price is making a higher high then you would draw the line from the top and if it was making a lower low you would draw the line from the bottom. Something so simple had me so confused but I think I am trying to learn to much to soon.

Ive taken a look at babypips and I am slowly going through the school.

Regarding this topic - do we have a post somewhere what detailed the whole system and what to look for entry and exit etc!

From my understanding so far I feel keeping it simple would be the best way forward, something like price action pure and simple. Thats why this thread took my eye because it was simple and effective, the use of the RSI would also hlep in maintaining winning trades etc.#

Any words of wisdom are welcome

Thanks
  • #1,216
  • Jul 1, 2012 12:00pm Jul 1, 2012 12:00pm
Can someone please explain lower highs and higher lows. My head hurts trying to image these and is there a simple way which side of the candlestick you draw the line to see diveregnce? why are some from top and some are from the botttom. I know its simple but ive got mind block thankyou so much.
  • #1,217
  • Jul 3, 2012 6:07am Jul 3, 2012 6:07am
bears in h1 timeframe but market is slow here is the pic
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  • #1,218
  • Jul 3, 2012 7:24am Jul 3, 2012 7:24am
Quoting sandy11
Can someone please explain lower highs and higher lows. My head hurts trying to image these and is there a simple way which side of the candlestick you draw the line to see diveregnce? why are some from top and some are from the botttom. I know its simple but ive got mind block thankyou so much.
Welcome aboard Sandy ...

You want to look at both the highs and lows of candles. BUT, what is most important is that you draw the RSI in the same manner as your candles. So, if you draw your line as the bottom of your candles you should draw your RSI line at the lows (troughs) of the RSI. If you draw your line at top of candles, you should draw your RSI at the highs (peaks) of the RSI.

In case you are looking for a regular bearish divergence (generally in an uptrend and looking for the end of the trend and reversal down) you will want to draw your lines at top of candles and thus at top of RSI. Then you look for divergence between those two lines where PRICE makes a higher high but RSI makes a lower high or stays flat. Please see one post above posted by Vasude (thanks Vasude) where he drew the line at top of candles (so he is taking the highs of candles) and it is showing the price making a higher highs (i.e. the highs of the price candles is gettign larger in value) and the RSI peaks are making lower highs, i.e the top of the RSI line actually decreasing in value or sloping down (lower highs).

In case you are looking for a regular bullish divergence (generally in a downtrend and looking for end of trend and reversal to the upside) you will want to draw your lines at bottom of candes and therefore at bottom of RSI. You will look for divergence of those two lines, whereby the PRICE makes a lower low, and the RSI makes a higher low or stays flat.

Hidden divergence is a bit different where you are looking for price (trend) continuation and not a reversal.
  • #1,219
  • Edited 7:54am Jul 3, 2012 7:49am | Edited 7:54am
well, it is not there yet, and there is no candle confirmation as of yet of course BUT, there appears to be diveregence forming in EU near a previous resistance (may becoem support) zone of 12550-12530. Keep an eye out for this zone just in case we may get a setup.
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  • #1,220
  • Jul 3, 2012 7:56am Jul 3, 2012 7:56am
looks like we have a setup on EJ for bearish hidden divergence and price continuation down.
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