D1 & h4 divergence and momentum trading | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Help regarding MACD, Stochastic, RSI & Divergence 32 replies

EASY H1 trading using divergence and candle sticks 1,542 replies

Divergence and hidden Divergence 122 replies

ECN && STP && Scalping && Hedging - Broker Review - Oct 2009 24 replies

Simple trading with S/R levels and stoch divergence 14 replies

Attachments: D1 & h4 divergence and momentum trading
Exit Attachments

D1 & h4 divergence and momentum trading

  • #41
  • Sep 3, 2015 4:55am Sep 3, 2015 4:55am
Quoting Intrepidpips
{quote} 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
I guess you mean a completely different thing from what I mean. Whats your use of curve-fitting again?
  • #42
  • Sep 3, 2015 6:23am Sep 3, 2015 6:23am
Quoting Atokys
{quote} I guess you mean a completely different thing from what I mean. Whats your use of curve-fitting again?

Okay for me I’m a great believer in moving averages (MA), and the have concept of moving average, the way I have come to understand it is that it is a value of the incremental period.
When you have at least two values, you have an average, when there is an incremental period like we traders always have then you employ the moving average.
For me the base average is 2 as you need to have at least 2 values to obtain an average value for. So on the D1 time frame my base value is 2, H4, H1, M30 etc , I prefer the 2 simple moving average.
When I chose a time frame to work with as my big picture chart, I want to see a representation of that Charts base MA in a smaller timeframe where I can take my trades from.
So I can curve-fit my 2SMA from D!, H4, H1 M15 into M1 where I take my trades from.
In M1, D1 2SMA = 2*144 0minutes which is 2880; H4 2SMA = 2*240 minutes making 480 and H1 2SMA =2*60 minutes which equals 120, while M15 2SMA = 2*15 minutes adding up to 30.
All these values in my M1 show me where price is at in the respective time frames and the measure of dynamic support and resistance.
Very simple concept really.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: DAILY IN H4.png Size: 101 KB
Click to Enlarge Name: H4 IN H1.png Size: 117 KB
Click to Enlarge Name: DYNAMIC RESISTANCE.png Size: 110 KB
Let it turn and find your entry.
  • #43
  • Sep 3, 2015 6:58am Sep 3, 2015 6:58am
I think my prolem with this system is not being ready when the market is set to move.
Seems to me the moves start an hour before FO that is 6am local time.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: WINNING ALL THE WAY.png Size: 111 KB
Click to Enlarge Name: JUST FLOW.png Size: 129 KB
Let it turn and find your entry.
  • #44
  • Sep 3, 2015 8:43am Sep 3, 2015 8:43am
Quoting Intrepidpips
{quote} Okay for me Im a great believer in moving averages (MA), and the have concept of moving average, the way I have come to understand it is that it is a value of the incremental period. When you have at least two values, you have an average, when there is an incremental period like we traders always have then you employ the moving average. For me the base average is 2 as you need to have at least 2 values to obtain an average value for. So on the D1 time frame my base value is 2, H4, H1, M30 etc , I prefer the 2 simple moving average. When...
I think I have an idea on what you're saying. What do you mean by incremental period?

For myself, im a believer in the usefulness of moving averages but I also believe that they are only significant when applied to the daily chart because each data point represents a full day of trading activity around the world.
  • #45
  • Sep 3, 2015 10:33am Sep 3, 2015 10:33am
Quoting Atokys
{quote} I think I have an idea on what you're saying. What do you mean by incremental period? For myself, im a believer in the usefulness of moving averages but I also believe that they are only significant when applied to the daily chart because each data point represents a full day of trading activity around the world.
The marrket is fractal in nature I've heard over and over again.
What I say is that when an order is executed, the market does not wait ftor the Daily or hourly time frame to close before being exected, in fact orders are executed in the finanacial markets in miliseconds, so why insist on only the daily moving average? You cannot curve fit the M1 into the D1 but you can curve-fit the D1 into the M1.

The moving average is a moving average of market price, so if there is a quoted price per timeframe, there will be a moving avergae per time frame.
Let it turn and find your entry.
  • #46
  • Sep 3, 2015 10:36am Sep 3, 2015 10:36am
RECOVERY

I recovered my losses (except for costs)

We engage in battle again tomorrow Mr Market.
Attached Image (click to enlarge)
Click to Enlarge Name: CAUGHT 18.png Size: 128 KB
Let it turn and find your entry.
  • #47
  • Sep 4, 2015 12:25am Sep 4, 2015 12:25am
MAGNETIC PIVOTS

Time and again I see price grawn to either R1,R2,R2 oR S1,S2,S3 oR DP.
Today's Asian session hit S1 already.
Attached Image (click to enlarge)
Click to Enlarge Name: S1 HIT.png Size: 104 KB
Let it turn and find your entry.
  • #48
  • Sep 5, 2015 2:13pm Sep 5, 2015 2:13pm
Quoting Intrepidpips
MAGNETIC PIVOTS Time and again I see price grawn to either R1,R2,R2 oR S1,S2,S3 oR DP. Today's Asian session hit S1 already. {image}
Some domestic problems needed solving which kept me from taking further signal including the one after the NFP dust settled.
Attached Image (click to enlarge)
Click to Enlarge Name: NFP PLAYOUT.png Size: 113 KB
Let it turn and find your entry.
  • #49
  • Sep 7, 2015 6:28am Sep 7, 2015 6:28am
M30 FOCUSED

I have looked and loked at my charts and it seems the best this system can offer is thru the M30

I curvr-fit the D1,H4 H1 and M30 into the M1 then use the M30 with H4 and H1 curve-fitted into it.

Once there is a colour change and immediate trend changd in M30, I wait for a corresponding aignal in M1 and aim for the nearest S&R
Attached Image(s) (click to enlarge)
Click to Enlarge Name: M30 FOCUS.png Size: 125 KB
Click to Enlarge Name: M30 FOCUS 1.png Size: 127 KB
Click to Enlarge Name: M30 FOCUS M1 1.png Size: 110 KB
Click to Enlarge Name: M30 FOCUS M1 2.png Size: 104 KB
Click to Enlarge Name: M30 FOCUS M1.png Size: 97 KB
Let it turn and find your entry.
  • #50
  • Sep 8, 2015 3:31pm Sep 8, 2015 3:31pm
WHAT A DAY?

Should have been a big pips haul for me but I wanted only to trade signals comming from O/B or O/S

BTW round number post.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: FRUSTRATION M30.png Size: 99 KB
Click to Enlarge Name: FRUSTRATION.png Size: 121 KB
Click to Enlarge Name: FRUSTRATION 1.png Size: 115 KB
Let it turn and find your entry.
  • #51
  • Sep 16, 2015 11:30am Sep 16, 2015 11:30am
MORE M30 FOCUS

The Stochastic indicator has been very helpful with Divergence (regular and hidden) but it does not weed out the false signals of the APB color change, so I had to look for something to filter out the diversions.
In comes the TDI and with the right tweaking it could do the job of keeping the equity curve rising.

So it's simple now, wait for the APB color to change and when TDI confirms with a cross in the same direction we go to the M1 and look for entry signals, in that direction.
The exception of TDI not yet changing would be a close of price above or below tjw 16SMA
Attached Image(s) (click to enlarge)
Click to Enlarge Name: WINNING WITH TDI.png Size: 108 KB
Click to Enlarge Name: WINNING WITH TDI EXCEPTIONS.png Size: 104 KB
Click to Enlarge Name: WINNING WITH TDI BO.png Size: 101 KB
Let it turn and find your entry.
  • #52
  • Sep 16, 2015 2:16pm Sep 16, 2015 2:16pm
I found this video very helpful,slow at first but the message sank in.

Inserted Video
Let it turn and find your entry.
  • #53
  • Sep 19, 2015 12:19pm Sep 19, 2015 12:19pm
IT'S ALL ABOUT DIVERGENCE.

I started this thread based on Divergence but it has shifted from that to something else -following the TDI cross.

I have to admit that the original idea was to spot a Divergence in D1, move to H4 to see it actuallyreplicated or going with the momentum of the D1 Divergence and catch an entry in M1,but the patience to scan several pairs diligently and wait for such divergences aspecially when combining trading with a day job made it seem like too much sffort and besides it requires considerable computing power.
So I tried to focus on H4 Divergences believing they would not be too far between like the D1, that was where frustration with my indicator of choice came in.

My observation was that in H4 the Stochastic settings (2,2,20 seems to make the Stochastic repaint in that timeframe. The Divergences were only perfect to the left, to the right you might need 2 or 3 price bars to confirm the divergence that you want to base your decision on.

This led ultimately to my adopting the TDI as filter on the M30 charts and striping the H4 of the Stochastic, the TDI is great (with the settings I adopted)but I don't get the benefit of any Divergence readings.

This to me is reactional not strategic or proactive trading. I had to call my self to question, is there no indicator that can meet my requirements?
The search began and I did not have to look too far. I think I have found something I can use but will give it some time to prove itself.
Let it turn and find your entry.
  • #54
  • Sep 19, 2015 12:42pm Sep 19, 2015 12:42pm
SAMPLE
Attached Image (click to enlarge)
Click to Enlarge Name: ND 01.png Size: 86 KB
Let it turn and find your entry.
  • #55
  • Sep 19, 2015 1:12pm Sep 19, 2015 1:12pm
COMPARE
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ND 03.png Size: 74 KB
Click to Enlarge Name: ND 02.png Size: 72 KB
Let it turn and find your entry.
  • #56
  • Sep 19, 2015 1:52pm Sep 19, 2015 1:52pm
how gbpusd went down
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ND 04.png Size: 87 KB
Click to Enlarge Name: ND 05.png Size: 99 KB
Click to Enlarge Name: ND 06.png Size: 91 KB
Let it turn and find your entry.
  • #57
  • Sep 19, 2015 2:36pm Sep 19, 2015 2:36pm
CHECK EURUSD OUT
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ND 07.png Size: 85 KB
Click to Enlarge Name: ND 08.png Size: 93 KB
Click to Enlarge Name: ND 09.png Size: 107 KB
Let it turn and find your entry.
  • #58
  • Sep 19, 2015 3:05pm Sep 19, 2015 3:05pm
not forgeting eurjpy
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ND 10.png Size: 91 KB
Click to Enlarge Name: ND 11.png Size: 72 KB
Let it turn and find your entry.
  • #59
  • Sep 23, 2015 5:24pm Sep 23, 2015 5:24pm
And the mysterious indicator is...?
  • #60
  • Sep 30, 2015 6:49am Sep 30, 2015 6:49am
Quoting dragos_
And the mysterious indicator is...?
CCI HISTOGRAM
Attached File(s)
File Type: ex4 scMTF CCI.ex4   8 KB | 237 downloads
Let it turn and find your entry.
0 traders viewing now