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Hidden divergence

  • #581
  • Jun 7, 2016 9:22am Jun 7, 2016 9:22am
Waiting for the cross of Tenkan.

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  • #582
  • Jun 7, 2016 10:00am Jun 7, 2016 10:00am
Quoting chamane
I jumped in. All my criteria are not met, but there is a nice evening star candle pattern. {image}


Did you go long, or short NZDAUD? I'm long from a few days ago, as usual I was to hasty getting in though I did gain from one trade today (26pips) I took, two micros remaining.
There is red news coming up in little over 24hrs. NZ cash rate makes this one a little hairy.

#I'm not trading hidden divergence yet, I joined the thread to learn about it. I'm using TDI with Davits pivot, also checking the fundies a little more than I used to which is why I mention the red news
"You know what needs to be addressed , completely completely reverse that".
  • #583
  • Jun 7, 2016 10:49am Jun 7, 2016 10:49am
Quoting Kmw
{quote} Did you go long, or short NZDAUD? I'm long from a few days ago, as usual I was to hasty getting in though I did gain from one trade today (26pips) I took, two micros remaining. There is red news coming up in little over 24hrs. NZ cash rate makes this one a little hairy. #I'm not trading hidden divergence yet, I joined the thread to learn about it. I'm using TDI with Davits pivot, also checking the fundies a little more than I used to which is why I mention the red news
I went short AUDNZD mainly because of that evening star pattern but also because price is just coming out of the Cloud and there is a clear down trend on the daily timeframe. If price goes down to half my risk, I will bring my stop loss to breakeven. That will be prevent losses from a possible news major move.

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  • #584
  • Jun 7, 2016 11:41am Jun 7, 2016 11:41am
Quoting chamane
{quote} Hi, I prefer when there is no noise between peaks or bottoms. When there are some like in your example, I switch to a higher timeframe (see picture) where I usually get a clear pattern. {image} Have a look at Elder's definition of divergence (link below, page 36). He uses two peaks above the zero line (a and c) separated by a bottom under the zero line (b) (for MACD) or two bottoms below the zero line (a and c) separated by a peak above the zero line (b). https://stockcharts.com/step-by-step-trading.pdf The example is for a regular...
Thanks chamane, I'll take a look.
K
Thanks for your help, warmth and straight talking Heather.
  • #585
  • Jun 7, 2016 3:52pm Jun 7, 2016 3:52pm
Here are some pairs where a hidden divergence setup is forming. Entries upon as many confluence signs as possible.

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  • #586
  • Jun 7, 2016 7:50pm Jun 7, 2016 7:50pm


Quoting chamane
Here are some pairs where a hidden divergence setup is forming. Entries upon as many confluence signs as possible. {image}
"The markets can remain irrational longer than you can remain solv
  • #587
  • Jun 8, 2016 12:51pm Jun 8, 2016 12:51pm
Bringing the stop loss to breakeven as profit is around half the risk. I have been kindly warned by Kmw (#post 582) of major news coming up for NZD. Otherwise, I am aming at least a RR 1:1.

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  • #588
  • Jun 8, 2016 12:57pm Jun 8, 2016 12:57pm
Just missed the entry by not much. A few minutes late.

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  • #589
  • Jun 8, 2016 3:44pm Jun 8, 2016 3:44pm
Here is an opportunity for scalpers. A 5 pip spread is too much for me at this TF.

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  • #590
  • Jun 8, 2016 3:58pm Jun 8, 2016 3:58pm
This looks like a reversal after a regular divergence, and a higher low with a HD pattern. I prefer when the trend is already established, but I will keep an eye on this one. A possible entry above the cloud. Another sign for long entries on smaller timeframes.

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  • #591
  • Jun 8, 2016 6:57pm Jun 8, 2016 6:57pm
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  • #592
  • Jun 9, 2016 8:35am Jun 9, 2016 8:35am
Hidden divergence developing on two timeframes for AUDUSD. The weekly chart shows a trend reversal and the 4 HR chart a trend continuation. The trigger signal hasn't been met yet.

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  • #593
  • Jun 9, 2016 12:51pm Jun 9, 2016 12:51pm
Waiting for price to cross the trendline on 15 min charts.

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  • #594
  • Jun 9, 2016 7:23pm Jun 9, 2016 7:23pm
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  • #595
  • Jun 9, 2016 9:27pm Jun 9, 2016 9:27pm
Pairs to watch on the 4 HR timeframe. Hoping price won't move before I wake up in the morning.

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  • #596
  • Jun 9, 2016 10:53pm Jun 9, 2016 10:53pm
Hi chamane,

One thing I consider when trading divergence is the time between peaks and troughs. Do you think about this?

I find the longer the distance the less valid the divergence is.

Shrips
  • #597
  • Jun 9, 2016 11:40pm Jun 9, 2016 11:40pm
Quoting shrips
Hi chamane, One thing I consider when trading divergence is the time between peaks and troughs. Do you think about this? I find the longer the distance the less valid the divergence is. Shrips
Hi shrips,

I have never considered the length between peaks and bottoms. I would be interested in what you have to say about it. For me, the hidden divergence pattern must be at first glance obvious, typical and within a clear trend. I suppose that he wave cycles are not the same depending on the currency pair and the timeframe.
  • #598
  • Jun 10, 2016 12:08am Jun 10, 2016 12:08am
Quoting chamane
{quote} Hi shrips, I have never considered the length between peaks and bottoms. I would be interested in what you have to say about it. For me, the hidden divergence pattern must be at first glance obvious, typical and within a clear trend. I suppose that he wave cycles are not the same depending on the currency pair and the timeframe.
Hi Chamane

I have been following this thread and your comments on so called hidden divergence for some time now.

What I would like to know is why you call it this when in the last post you made you say it has to be obvious, so how is it 'hidden'?

Thanks in advance as I would really like to know this.
  • #599
  • Jun 10, 2016 2:17am Jun 10, 2016 2:17am
Quoting Nala66
{quote} Hi Chamane I have been following this thread and your comments on so called hidden divergence for some time now. What I would like to know is why you call it this when in the last post you made you say it has to be obvious, so how is it 'hidden'? Thanks in advance as I would really like to know this.
Hello Nala66,
Hidden divergence is just the name given to this kind of divergence. I assume you are familiar with what is called divergence where say price shows a lower low but the oscillator shows a higher low. The other name for hidden divergence is reverse divergence where we have the reverse situation of price showing a higher low and the oscillator showing a lower low. Take a look at babypips if I'm not making myself clear. You could read chamane's post as that he likes to see obvious reverse divergences.
K
Thanks for your help, warmth and straight talking Heather.
  • #600
  • Jun 10, 2016 6:23am Jun 10, 2016 6:23am
Quoting chamane
{quote} Hi shrips, I have never considered the length between peaks and bottoms. I would be interested in what you have to say about it. For me, the hidden divergence pattern must be at first glance obvious, typical and within a clear trend. I suppose that he wave cycles are not the same depending on the currency pair and the timeframe.

I find the longer the time between peaks and troughs causes a lower success rate but I am basing this only on a 5m TF. I find anymore than 35 bars between highs/lows make the setups less valid and I don't take the trade. I also don't take trades where there is another peak or trough in the middle of the divergence. It must be the next wave. Hidden divergence works well when its in the same move or thrust so therefore the shorter the distance between the divergence the more powerful the move and higher success rate.

Take to time to count the number of bars on your most successful setups and see if there is a pattern? I'm not familiar with other timeframes but its worth looking into.
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