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EASY H1 trading using divergence and candle sticks

  • #1,461
  • Dec 22, 2015 12:59pm Dec 22, 2015 12:59pm
What you follow after you see divergence like that i found? You wait for stochastic cross 40 and 60 levels?

AUD/NZD looking bullish divergence

Quoting diamonddbw
{quote} ++++++++++++++++++++++++++++++++ Looks like bearish divergence to me. The entry would have been about .6814 imho. The rub is that red Nzd news comes out 3hrs from now.
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  • #1,462
  • Jan 6, 2016 9:26am Jan 6, 2016 9:26am
We need to find something to avoid much false signals....

Yesterday for example on NZDJPY was on support + divergence on both indicators and it not go up....
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  • #1,463
  • Jan 6, 2016 9:41am Jan 6, 2016 9:41am
Quoting halk
We need to find something to avoid much false signals.... Yesterday for example on NZDJPY was on support + divergence on both indicators and it not go up....
It seems the other divergence was much stronger (and the support not enough strong).
Attached Image (click to enlarge)
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  • #1,464
  • Jan 6, 2016 6:56pm Jan 6, 2016 6:56pm
Thats the main problem, how i know if the support is strong or not? lol is complicated...

Several pairs yesterday not respected the divergences...

Quoting szgy74
{quote} It seems the other divergence was much stronger (and the support not enough strong). {image}
  • #1,465
  • Jan 10, 2016 11:19am Jan 10, 2016 11:19am
Quoting halk
We need to find something to avoid much false signals.... Yesterday for example on NZDJPY was on support + divergence on both indicators and it not go up.... {image}
Hi Halk,

I can see multiple problems in taking this trade. I will make the list numerical.

1. Price is on a downtrend so now you are countertrend trading the major trend. That is ok to do but your TPs have to be much smaller.
2. Do you know candlestick analysis? I can see multiple signals to take the counter trend trade right after divergence has printed that would have yielded 100-200 pip gains.
3. If you are new to trading divergence please stick to trading with the major trend. Price action analysis is very very important if you want to be a profitable trader.

Now I have no idea where your trading is at in terms of knowledge but if I was to teach you I would make sure you knew these things like the back of your hand.

1. Support/Resistance. Know how to find it and draw your own lines before adding an indicator that does it for you.
2.Candlestick Analysis. This is huge. Combine this with support and resistance and you have profitable trading.
3.Price Action Analysis. If you want to really reap all the rewards of trading know this. Once you have this down you will be impossible to beat.

Once you combine those 3 things with divergence you will be a forex assassin! Buy books and study study study. Once you have memorized those three things start looking at charts. Dont trade just look at charts and study study study. I promise that if you do this you will get so good at spotting trade setups you will do it without even thinking about it!
  • #1,466
  • Jan 10, 2016 2:29pm Jan 10, 2016 2:29pm
Thanks for your answer!

Yes i know about support and resistance lines, but i tried to follow that indicator what i said and i made the trade on one support. The candlestick what i see, it formed one pinbar, not closed full but the main idea what i see on the candle is it, thats the second reason why i bought in this example.

From 2 months until now, im studing much price action, how the market move, i see have several forms of trade price action...

For example: harmonic patterns, wolf waves and others... but im trying to find one easily one to trade

Because is hard to find one pattern, of course, for who trade with, combined with support and resistance levels, have great results.

Thanks

Quoting piptime
{quote} Hi Halk, I can see multiple problems in taking this trade. I will make the list numerical. 1. Price is on a downtrend so now you are countertrend trading the major trend. That is ok to do but your TPs have to be much smaller. 2. Do you know candlestick analysis? I can see multiple signals to take the counter trend trade right after divergence has printed that would have yielded 100-200 pip gains. 3. If you are new to trading divergence please stick to trading with the major trend. Price action analysis is very very important if you want...
  • #1,467
  • Feb 4, 2016 12:10pm Feb 4, 2016 12:10pm
This is, as far as I know, the most up to date of the Divergence petr indicators.
I have searched many threads but cannot find a pdf to explain some of the lines on the indicator.
George
Attached File(s)
File Type: mq4 Divergence_MASTER_Petr_2_nmc.mq4   61 KB | 888 downloads
  • #1,468
  • Feb 19, 2016 1:18am Feb 19, 2016 1:18am
Quoting piptime
1. Support/Resistance. Know how to find it and draw your own lines before adding an indicator that does it for you. 2.Candlestick Analysis. This is huge. Combine this with support and resistance and you have profitable trading. 3.Price Action Analysis. If you want to really reap all the rewards of trading know this. Once you have this down you will be impossible to beat. Once you combine those 3 things with divergence you will be a forex assassin! Buy books and study study study.
Can you suggest some good books/tutorials/threads to learn candlestick and price action analysis please?
  • #1,469
  • Feb 19, 2016 3:44am Feb 19, 2016 3:44am
Quoting TrendyRanger
{quote} Can you suggest some good books/tutorials/threads to learn candlestick and price action analysis please?
Here you go
Attached Image
Attached File(s)
File Type: pdf CANDLESTICK PATTERNS.pdf   498 KB | 981 downloads
Trade with 60
  • #1,470
  • Feb 25, 2016 4:52am Feb 25, 2016 4:52am
These are 3 places I learned about divergence trading. Over at James 16 thread I came across a trader named Ryanmcd whom I first learned about trading this way. The link below is to his charts. Just plow through them...hunt around and you'll find lots of info.
The Jankone link is to a trader who learned from Ryanmcd...he too is a good source to learn about divergence.
Range Breaker is right in the ballpark. Enjoy

http://www.forexfactory.com/ryanmcd


http://www.forexfactory.com/showthread.php?t=163972
( Jankone M5 thread )


http://www.forexfactory.com/showthread.php?t=310120
( Range Breaker Method )
  • #1,471
  • May 18, 2016 8:14am May 18, 2016 8:14am
Divergence is bae
  • #1,472
  • Aug 16, 2016 4:39pm Aug 16, 2016 4:39pm
Been a very long time since I have posted anything in this thread. I will be posting trades taken using divergence once again. Below is a trade I am currently in, we will see how it unfolds in the next few hours! Cheers friends!
Attached Image (click to enlarge)
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As you can see from the long wicks that this is a heavy supply and demand zone. My expectation based off area, divergence, and candlesticks is that it will reverse and hit tp. But only time will tell!
  • #1,473
  • Aug 16, 2016 10:06pm Aug 16, 2016 10:06pm
Quoting piptime
Been a very long time since I have posted anything in this thread. I will be posting trades taken using divergence once again. Below is a trade I am currently in, we will see how it unfolds in the next few hours! Cheers friends! {image} As you can see from the long wicks that this is a heavy supply and demand zone. My expectation based off area, divergence, and candlesticks is that it will reverse and hit tp. But only time will tell!
Hi Piptime, welcome back! This is exciting news, as your thread helped me in learning to identify divergence. It's the perfect tool, and best of all, simple. So, thank you for your selfless contributions. Here's a trade that I took earlier that worked out perfectly on eur.gbp. Although I use TDI, it's still based on the 13 period RSI. I love divergence!
Attached Image (click to enlarge)
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"An investment in knowledge pays the most interest."
  • #1,474
  • Aug 17, 2016 10:34am Aug 17, 2016 10:34am
Quoting Kei78
{quote} Hi Piptime, welcome back! This is exciting news, as your thread helped me in learning to identify divergence. It's the perfect tool, and best of all, simple. So, thank you for your selfless contributions. Here's a trade that I took earlier that worked out perfectly on eur.gbp. Although I use TDI, it's still based on the 13 period RSI. I love divergence! {image}
Hi Kei78,

Makes me happy to know that this thread and my post have helped you become a successful trader. I use to trade with TDI back when I first started trading but I didnt use it for divergence. I had no idea what divergence was and used TDI to trade a mechanical system called Trading Made Simple that I found here on ForexFactory. Since then I have stepped away from "Systems" and trade only divergence with chart structure. Although I did not recall TDI having RSI in it but at the same time when I used it I really knew nothing about the components of it. I see that you are already following me if you would/could contribute to this thread to help others like I have helped you that would be great. If not no worries I will continue teaching!
  • #1,475
  • Aug 17, 2016 10:25pm Aug 17, 2016 10:25pm
Quoting piptime
{quote} Hi Kei78, Makes me happy to know that this thread and my post have helped you become a successful trader. I use to trade with TDI back when I first started trading but I didnt use it for divergence. I had no idea what divergence was and used TDI to trade a mechanical system called Trading Made Simple that I found here on ForexFactory. Since then I have stepped away from "Systems" and trade only divergence with chart structure. Although I did not recall TDI having RSI in it but at the same time when I used it I really knew nothing about the...
No problem, I'd be happy to post potential setups or trades that I've taken myself. So that everyone is on the same page, I can use RSI. So, you have switched to the 10 period from 7?
"An investment in knowledge pays the most interest."
  • #1,476
  • Aug 17, 2016 10:59pm Aug 17, 2016 10:59pm
Quoting Kei78
{quote} No problem, I'd be happy to post potential setups or trades that I've taken myself. So that everyone is on the same page, I can use RSI. So, you have switched to the 10 period from 7?
Hi Kei78,

I do believe I have always used the 10 period on RSI.

Ok for people who are newer I wanna show you an other indicator that is great for spotting divergence easier. Below is a picture of the Awesome Oscillator printing divergence on the 4hr chart recently. And yes I did in deed take this trade.
Attached Image (click to enlarge)
Click to Enlarge Name: audchfi-h4-tw-corp-2.png Size: 69 KB


Please let me know if you have any questions!
  • #1,477
  • Aug 19, 2016 12:37am Aug 19, 2016 12:37am
Quoting piptime
{quote} Hi Kei78, I do believe I have always used the 10 period on RSI. Ok for people who are newer I wanna show you an other indicator that is great for spotting divergence easier. Below is a picture of the Awesome Oscillator printing divergence on the 4hr chart recently. And yes I did in deed take this trade. {image} Please let me know if you have any questions!

Hi again, looks like your trade was a success! I don't trade that pair, but it was beautiful. I agree, I think that the AO indicator is really good at detecting divergence. I didn't really trade today, but I'll check and see if I see anything later on today.
"An investment in knowledge pays the most interest."
  • #1,478
  • Edited 7:54pm Aug 19, 2016 5:18pm | Edited 7:54pm
This is the USD.CHF on the 4H chart. It's a trade that I actually saw setting up, but I forgot about until I came back to look at my charts and I saw that she moved to the upside, as predicted. It would have been good for a good 50 pips, and would have been the perfect end to the trading week. In my opinion, support and resistance, price action, and divergence combined are a BEAUTIFUL concoction. Rather you have dreams of catching as little as 10 pips a day to over hundred pips a day, this method can get you there. I hope that everyone has a safe weekend.
Attached Image (click to enlarge)
Click to Enlarge Name: U.CHF_Divergence_8.19.16_4H.png Size: 34 KB
"An investment in knowledge pays the most interest."
  • #1,479
  • Aug 22, 2016 3:28pm Aug 22, 2016 3:28pm
Quoting Kei78
This is the USD.CHF on the 4H chart. It's a trade that I actually saw setting up, but I forgot about until I came back to look at my charts and I saw that she moved to the upside, as predicted. It would have been good for a good 50 pips, and would have been the perfect end to the trading week. In my opinion, support and resistance, price action, and divergence combined are a BEAUTIFUL concoction. Rather you have dreams of catching as little as 10 pips a day to over hundred pips a day, this method can get you there. I hope that everyone has a safe...
Hey Kei78,

Where did you get the ADR high and ADR Low indicator? Thank you!
  • #1,480
  • Edited 2:51pm Aug 24, 2016 12:38am | Edited 2:51pm
Quoting piptime
{quote} Hey Kei78, Where did you get the ADR high and ADR Low indicator? Thank you!
Greetings! I've had it awhile. I'll upload a copy in this thread tomorrow for you. It comes in handy!



Here it is!
Attached File(s)
File Type: ex4 !SM_ADR Marker.ex4   12 KB | 441 downloads
"An investment in knowledge pays the most interest."
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