One hour (h1) divergence trading | Forex Factory

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One hour (h1) divergence trading

  • #1
  • First Post: Edited 9:47am Oct 20, 2014 8:51am | Edited 9:47am
Hi everyone,

I've been working my eyes off the M1 charts and found the perfect set-ups but just one snag I have to keep burning my eyes on the charts so I don't miss my entry signals and I've come to conclude that the missed and second guessed entries are the ones that should have made me a Forex millionaire by now not even the loosing trades.

So until I can go full time and fire my boss I want to devote more time on the H1 charts and work my way to leaving my day job.

Here's the system

INDICATORS
Main
1 2 Period SMA close shift 2
2 2 period Stochastic High-Low

Ancillary

1 ICT Big and Mid figures
2 ICT Asian Session
3 Market panel display controller
4 P4L clock
5 APB
6 Alerts on new bar



The object is to spot a divergence between price and indicator and make sure price closes below 2SMA for a sell or above for a buy

I compare price high/low with indicator high/low, confirm price close and gauge previous high/low for SL placement/risk assessment

I like to check for divergences at FO, LO & NYO; if you trade Tokyo open you can check also.
With a basket of currency pairs you are bound to find at least 2 trades morning and noon.

I like to set and forget so I trade with 30/30 TP/SL

If I get two signals at Fo, I could just bail out when my pips count tally 30 (+/-) or let the trade play out to TP or SL

Still open to development will keep raising the bar, my aim is as close to zero subjectivity as possible
Attached Image(s) (click to enlarge)
Click to Enlarge Name: [AUDJPY] H1.png Size: 72 KB
Click to Enlarge Name: [EURJPY] H1.png Size: 64 KB
Click to Enlarge Name: [GBPCHF] H1.png Size: 68 KB
Attached File(s)
File Type: rar H1 DIV.rar   54 KB | 791 downloads
Let it turn and find your entry.
  • #2
  • Oct 20, 2014 8:57am Oct 20, 2014 8:57am
I let this one pass because the close above 2 SMA was not so obvious.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [EURAUD].png Size: 78 KB
Let it turn and find your entry.
  • #3
  • Oct 20, 2014 9:18am Oct 20, 2014 9:18am
WARNING

DIVERGENCES FAIL

So this is no holy grail consequently, I need to know what I'm doing very precisely this time around.
I will only compare the divergences occurring in O/B and O/S and trade with conservative leverage.

the EU for instance gave a nice Divergence trade at LO 9didn't get to 30 pips though) but I could have been tempted to take the apparent divergence sell but the High did not register as O/B.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [EURUSD.png Size: 80 KB
Let it turn and find your entry.
  • #4
  • Edited 9:50am Oct 20, 2014 9:33am | Edited 9:50am
MARGINAL TRADES
Sometimes price may close above or below 2SMA then the indicator high/lows may tell you "hey Divergence spotted"but the price high/lows may not align perfectly and you might just let the trade pass while it rides to +30.

The first signal on GU was marginal to me, but I was thick of work to take the buy.
In the first one the peaks were so close together whereas the indicator showed divergence.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [GBPUSD].png Size: 68 KB
Let it turn and find your entry.
  • #5
  • Oct 20, 2014 10:05am Oct 20, 2014 10:05am
Tell me was this marginal, it was good for +30?
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [AUDUSD].png Size: 68 KB
Let it turn and find your entry.
  • #6
  • Oct 20, 2014 10:19am Oct 20, 2014 10:19am
WHY 30 PIPS?

I got a spreadsheet from FF from a fellow trader -SmokeyD http://www.forexfactory.com/smokeyd and ever since I've been obsessed with the idea of finding a simple and consistent method of catching 30 pips daily from the markets and i think i found it and I'm ready to follow the road map.

http://www.forexfactory.com/showthre...80#post5193380

I'm attaching a modified copy.
Attached File(s)
File Type: xlsx 28 WEEKS ROADMAP.xlsx   13 KB | 619 downloads
Let it turn and find your entry.
  • #7
  • Oct 20, 2014 10:41am Oct 20, 2014 10:41am
EURAUD

Today twice marginal twice +30

1st signal was marginal on account of the close above the 2SMA not being so obvious the sell before NYO was marginal on account of the second leg of the indicator divergence did not occur in O/B.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [EURAUD] II.png Size: 79 KB
Let it turn and find your entry.
  • #8
  • Oct 20, 2014 11:06am Oct 20, 2014 11:06am
EURUSD

Marginal and non mover at NYO

One thing not to do is refer to H4 or D1 time frame that will sway your decision for sure.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [EURUSD] II.png Size: 84 KB
Let it turn and find your entry.
  • #9
  • Oct 20, 2014 10:08pm Oct 20, 2014 10:08pm
instead of trading 1H with 1H Chart
give a try trading it with 1min or 5min charts using your indi setups multiplied with the multiplant of TF difference

believe me you will get better results
my2cnts

GL
My Best Trade is Next Trade!
  • #10
  • Oct 20, 2014 10:25pm Oct 20, 2014 10:25pm
Quoting MAM.Trader
instead of trading 1H with 1H Chart give a try trading it with 1min or 5min charts using your indi setups multiplied with the multiplant of TF difference believe me you will get better results my2cnts GL
I dont think your post is very clear, can you be more detail with what the setup actually is?
  • #11
  • Oct 20, 2014 10:43pm Oct 20, 2014 10:43pm
ohh boy...not looking for an argument, but...
divergence is present on any timeframe, and some of the differences between them are

1) the trader's ability to spot them easier
2) the move size

my best DIV entries are on 1h and 4h, but I do trade the 1 and 5 mins as well, just for quick scalps

Making a statement like divs on 1&5 tf are better and more profitable than 1h divs makes no sense in my view

Quoting MAM.Trader
instead of trading 1H with 1H Chart give a try trading it with 1min or 5min charts using your indi setups multiplied with the multiplant of TF difference believe me you will get better results my2cnts GL
  • #12
  • Oct 20, 2014 10:47pm Oct 20, 2014 10:47pm
ohh kid
I am talking with the data analyses of last 20 years for each TF
first learn then talk
before that learn how to listen & respond

yes monkey there are div for each TF but which is the most probable ??

-- Last Post --

Quoting kentashiburo
ohh boy...not looking for an argument, but... divergence is present on any timeframe, and some of the differences between them are 1) the trader's ability to spot them easier 2) the move size my best DIV entries are on 1h and 4h, but I do trade the 1 and 5 mins as well, just for quick scalps Making a statement like divs on 1&5 tf are better and more profitable than 1h divs makes no sense in my view {quote}
My Best Trade is Next Trade!
  • #13
  • Oct 20, 2014 10:57pm Oct 20, 2014 10:57pm
Message from the Monkey to the gentleman MAM.Trader

Your "talking with the data analyses of last 20 years for each TF" must have clouded your not only judgment, but also the ability to accept a different opinion.

Nevertheless, PA and any (repeat ANY) oscillator will diverge, and the frequency will be a variable of the OSCI settings, not related to the timeframe.

What is probable is the fact that you will have an even more intelligent answer to my post than the previous one- and a;; that on a TF of 1min.

Intrepidpips, do whatever works for you man, and don't let "gentlemen" like Captain America change your strategy with no backing of the data and his "research"

Quoting MAM.Trader
ohh kid I am talking with the data analyses of last 20 years for each TF first learn then talk before that learn how to listen & respond yes monkey there are div for each TF but which is the most probable ?? -- Last Post -- {quote}
  • #14
  • Oct 20, 2014 11:08pm Oct 20, 2014 11:08pm
he's a flamer and has no idea what he's talking about - just posting mindlessly to get post counts - don't mind him

Quoting Djemalo
{quote} I dont think your post is very clear, can you be more detail with what the setup actually is?
  • #15
  • Oct 21, 2014 2:06am Oct 21, 2014 2:06am
Quoting MAM.Trader
instead of trading 1H with 1H Chart give a try trading it with 1min or 5min charts using your indi setups multiplied with the multiplant of TF difference believe me you will get better results my2cnts GL
You are right.
Just that waiting for set-ups in M1 can be time consuming and sometimes I tend to jump the gun.
NZDJPY 7/10/204, Divergence spotted, price closed above 2SMAat FO but M1 signal came after LO my H1 entry would have gotten me in immediately @ FO and my SL would have been in tact but for sure I'd have jumped the gun in M1 before LO.

I will still trade the M1 on the side with just EURUSD.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: H1 [NZDJPY].png Size: 80 KB
Click to Enlarge Name: H1 [NZDJPY] II.png Size: 84 KB
Let it turn and find your entry.
  • #16
  • Oct 21, 2014 2:27am Oct 21, 2014 2:27am
Quoting Intrepidpips
EURUSD Marginal and non mover at NYO One thing not to do is refer to H4 or D1 time frame that will sway your decision for sure. {image}
I spoke too soon
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [EURUSD] III.png Size: 83 KB
Let it turn and find your entry.
  • #17
  • Oct 21, 2014 2:48am Oct 21, 2014 2:48am

GL
Quoting Intrepidpips
{quote} You are right. Just that waiting for set-ups in M1 can be time consuming and sometimes I tend to jump the gun. NZDJPY 7/10/204, Divergence spotted, price closed above 2SMAat FO but M1 signal came after LO my H1 entry would have gotten me in immediately @ FO and my SL would have been in tact but for sure I'd have jumped the gun in M1 before LO. I will still trade the M1 on the side with just EURUSD. {image} {image}
My Best Trade is Next Trade!
  • #18
  • Oct 21, 2014 3:09am Oct 21, 2014 3:09am
hi intrepidpips
thx for sharing this strategic ,it is use for all pair in H1 ?
  • #19
  • Oct 21, 2014 4:53am Oct 21, 2014 4:53am
Quoting cavenlee92
hi intrepidpips thx for sharing this strategic ,it is use for all pair in H1 ?
ALL
Let it turn and find your entry.
  • #20
  • Oct 21, 2014 4:55am Oct 21, 2014 4:55am
CURRENT TRADE

Do I wait for +30 or bail out?
Attached Image (click to enlarge)
Click to Enlarge Name: H1 [USDJPY].png Size: 89 KB
Let it turn and find your entry.
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