Trading Divergences

Hello all,

Would like to keep a trading journal here on my trades. I've simplified my trading to trade mainly divergences in the H1/H4 and occasionally M30 charts. I use RSI(9) to spot divergences. When I see a divergence, I need to know the location.

I look for at least one of three things:

 

1. a very strong S/R
2. Supply/Demand
3. price action

If price is at one of those three with a strong divergence, I initiate a trade.


I risk no more than 1.5% per trade and I aim for at least 1:2 risk to reward.



For a long time, I struggle with when and where to take profit. Now I just set TP at closest S/R flip or supply demand zone.



I don't get a lot of signals so this journal will be pretty slow. But nevertheless, the aim of this journal is for me to keep better track of my trading activities.

Here was a trade initiated last night.

Divergence. Check!
Price action. Check!

I am a Divergence trader, but mainly use the MACD, where I look for setups based on conformation from other TF's, S&R and other indicators.

I will follow your thread out of interest, because the RSI would not be my natural choice for trading divergence and thus your results will be of interest.

Happy pips and good luck with your trading

Looking forward to it

New trade initiated

I'm particularly interested in this divergence setting up. However, the location isn't ideal for me. I will take the trade if this push up to 1.3 with a clear divergence though

new trade

Could you please talk me through your trade, SL placement and TP target.