RSI Unlimited

In my experience, this method produces high probability successful trades.

5 minute time frame (other time frames will work as well)
EURUSD, GBPUSD, AUDUSD, USDJPY, EURJPY (any pair that has enough daily movement)
New York and London sessions work best because of liquidity

Trend Setup:
Look for hidden divergence between the oscillators (RSI Unlimited and/or the standard RSI) and price swings shown by the Semafor indicator. Match up significant swings in price with swings on the oscillator and look for the the oscillator to exceed its previous swing while price does not. This often occurs at a Daily Average Fibo level. Take the trade in favor of the trend and target a Fibo level for exit. Set the stop loss just beyond the swing in price used to create the hidden divergence, or if that is too far away, set it just beyond a fib level, or beyond the moving average cloud.

The RSI Unlimited and RSI indicators have overbought and oversold settings within them that can be manually set to notify you when the oscillator breaches the level you set. You can set the levels of the recent swing and then be notified when it is breached -- so you can determine if it is an entry or not.

Reversal Setup:
Look for regular divergence in the RSI Unlimited after a sustained move in price. Then wait for a hidden divergence setup to appear in the RSI Unlimited in the opposite direction.

This method relies on average daily movement and that price will reach for and bounce off of certain levels while on its way to fulfilling its daily range. It gives you an edge by showing high probability moments to enter and then to exit. The appearance of hidden divergence at a daily range fibo level with a yellow semafor indicates that price is ripe to continue the trend.

As in any method, there are times to use caution or completely stand aside and keep your finger off the mouse. Here a couple of those times:
1. Keep an eye on the daily range -- when price has moved most or all of its average range, be careful of additional setups -- they may not have enough gas in them to follow through to the exit target.
2. After a deep and run, be cautious of your risk / reward -- compare the necessary stop loss to the likely follow through for the rest of the day.

The real heart of of these setups is the RSI Unlimited, which is basically a standard RSI but without the minimum and maximum of 0 and 100. It can run as far as it needs to. This uses the RSI formula and allows it to react more quickly.

The other essential item, at least for me, are the Daily Range Fibo levels. These are fibo levels based on the average daily range of the currency plotted above and below the daily open. It measures out the day from its open and is amazingly accurate.

Your system looks good. I will test it but your file is giving error when i tried to extract it

@aahmad29 try again.no error on my end.

Brapp - how do you get the nice visual on the charts (coloring)?

Good system, thanks for your sharing.

That is very complete divergence trading system, you are using so many indicators in it. In your second PDF you describe the indicators for your system. In other words you have so many things to watch. It is not very easy to use.


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bb trading

Actually, it is very easy to use. There are a number of indicators but some of them are duplicated to be specific to the time frame -- I set alert levels in the 5m and 15m oscillators so they each need their own version. The other indicators help me see what has taken place as far as the daily range so far.

All you have to do is match the semafor points (swings in price) with the peak or valley in the oscillators and then wait for hidden divergence to show. That usually occurs near a fib level, but once in the trade I use the fib level as a target. For me, patience is my biggest problem because what I look for is so simple.

Take the AUDUSD today, when I sat down I quickly saw a red Moving Average Cloud, so could easily see a down trend. Next, I noticed that price had moved about 70 pips out of an average 92 (twenty day average), and had already retraced some of that move. Then I looked for the most recent yellow semafor peak and corresponding peak in the oscillators. The RSI Unlimited had already formed a hidden divergence but without a new semafor (a new semafor, especially a yellow one, shows the maturity of the current move), and not near a fib level. I waited and expected price to reach for the 23% fibo and to develop a yellow semafor, which happened after a few candles. By that time the RSI was also showing hidden divergence. Click and enter. Now I focus on the fibo levels below as targets.

A nearly perfect setup...

For which part do you mean? Everything is based on standard option on the chart or in the indicators, except for the RSI at the bottom. For that I opened rectangle boxes within the indicator box and set the date parameters to extend well behind and ahead of today's date so that it just stays that way for a long time. They are in the Objects List and I think they are labeled.

An interesting detail about the color ranges on the RSI is that they fairly closely match the colors in the Moving Average Cloud -- meaning, for example, that when the MA Cloud is red, the RSI has most likely penetrated the bearish range and remained there or in the neutral range, all of which supports a bearish bias.

Any chance you can post a template that will be like the chart in post #10.

I know how to make the grey 200/100 cloud but no idea how you have the colours in RSI window or the red/green colouring on the main chart.

Here are two templates. Let me know if you have trouble with them...

G'day Brapp
No ma cloud showing in any template

These should now be the right ones -- for some reason only older versions of the templates were listed in my file folder, but these I saved again this morning. Let me know... sorry about that.

Greetings Brapp. Nice system you have here. Thanks for sharing.

Your charts are stunningly beautiful. Love the clarity.

Don't know what I'm doing wrong but I can get an M5 chart with coloured RSI M5 window. If you change the chart time frame then you lose the RSI window completely even if you change the time frame within the indi parameters as well. I tried opening an M15 chart and using the coloured RSI M15 indi but just get a normal RSI window with no colouring.

Thank you very much Brapp, I was looking for a good trading system ...

Worked for me few hours ago. You need to use the templates in post #15 above only thing.