D1 & h4 divergence and momentum trading

Enjoy your weekend.

EVERY SIGNAL COUNTS

Missed my entry on the high at FO which was a positive one then got a chance after the CPI figures but got stopped out (even moved my SL)
Was too busy to catch the other signals after price opened above 2SMA in H4.

I will have to make a choice between my job and trading this full time as I'm getting more responsibility but same salary (which cannot be compounded)

I'm including Bands 480 std dev 1 and 2880 SMA (2X1440 representing the daily trend) Also throwing in the Fib Pivots and 30 period CCI (histogram).
I want to concentrate on just one pair for at least 2 months -GBPUSD and as such will not just wait for D1 and H4 Divergence to trigger a trade, instead I'd follow the daily and H4 momentum on H4 and take my trades on M1.

I'm trying to document my new method of trading so I don't derail myself I can always come back and refer to what I've written down.
I did not have time to trade today and I am just seeing how the day would have played out from FO

I have the choice of following observed divergence or just following the H4 buying or selling pressure which I term momentum and yesterday there was a sell-off following the break of R1 on H4 then a divergence in the Asian session signalling a push back up.

Place your bets

GBPUSD did not give excellent signals on H4 chart pre-FO as the Daily trend and the H4 trend were not in synch and the pre-FO H4 candle close was an indecision candle.

I struggled with deciding or forecasting which direction price was likely to go at FO so I had to let the market do it's thing and it was like up and away but I needed a retrace for my entry so I stayed away, the retracement came but I had to shower and take the kids to school so I missed out of some nice Bull run into LO.

The London session did not give enough retracement fo me to consider a Long so I thought there was going to be a Counter trend set-up but I didn't get an OB signal on the Stochastic to take the 30SMA going back into the 2SD 480 Bands as a shorting opportunity (just playing safe)

Went long after the GBP Mfg MPI news release but dumped the trade at divergence forming against it.
After the H4 candle closed, I jumped in as I saw another OS stochastic signal but was stopped out and I took the next OS and Divergence signal, coupled with a bounce off 480SMA.

Now why did I bail out at 11 when H4 was showing that Support 1 could be attained even when I'd moved to break even?

Just have to keep this in mind, This system is so profitable when you pay attention to details like the CCI Divergence which would have been an opportunity to add on while waiting for price to hit S1. I was sadly unavailable.

Looks awesome specially STOCH

Thanks IF, I had to go back to the drawing board and so far so nice.

Post #1 updated with Indies and templates.

Today was a good day as every day in the market is. I was expecting GBPUSD to give the Bulls a discount to go higher and greak the resistance but was fooled so I missed out on the free fall.

I expected price to turn at the Daily pivo and Daily 2SMAt, it did but was not sustained the golden opportunity was when a hidden divergence occured at a bounce-off ofdaily pivot and D1 2SMA, but I was stuck on my expecting the Bulls to take over the market.
I gueauu that's the old maxim "trade what you see, not what you expect"

Playing with some new toys (momentum).

Off to my holiday with the kids and relaives.
Cya in September.

A very good Pre LO session today, H4 hinting a continued fall in the GBPUSD but I missed my entry, waiting for London Session to give a retracement or reversal.

I think thats the problem. Curve-fitting is something you should avoid in a System.

TWEAKING

Athough it is hard, it is a better option to Multi-time frame indicators as I have found.

Entered on the bounce-off 30SMA (M15 2SMA)
SL hit, expecting another entry signal as Stoch is presently O/B

What I mean is that as a general rule, curve-fitting is a bad idea.

No offence meant ut who made that rule?

Its inferred from the nature of markets. Markets are always changing and the more you fit your system to match a small sample size of data the less robust it becomes.

I understand that the market is always changing, but if you use moving avarages at all, you are going to have to curve-fit them to have a balanced structure when you are moving in between time frames.

Check this out for starters.

http://www.forexfactory.com/showthre...25#post3418325