Hey all!
I trade divergences for a 5 years. I developed my own style.
At first go there - http://www.forexfactory.com/showthread.php?t=573414
There is how I started my way.
Now, I must apologise - the people were a little fooled by me because I told, that there is a magical, special indicator for divergences. It's not true.
The best indicator for divergences is one and only - STOCHASTIC OSCILLATOR.
Yes, stochastic. The best indicator created by far. The succes of trading divergences is in parameters of stochastic.
In my practice I found 2 parameters which gives a very high probability that divergence will be profitable.
First stochastic parameters.
1) D period=1
2) slowing=1
3) Price field=close
4) MA method=simple
5) Turn off chech mark in max and min stochastic values
6) K period=500
Second stochastic parameters.
1) D period=1
2) slowing=1
3) Price filed=close
4) MA method=simple
5) Turn off chech mark in max and min stochastic values
6) K period=4000
Rules
Use both stochastics in the same time and chechk all trading pairs for divergences. You can trade two types of divergences - classical and hidden.
Trading timeframes - only H4, D1. It's in MT4 but if you trade in MT5, you can use H2, H6, H8, H12 as well. Do not trade H1, M30, M15.
Take profits and Stop losses you can do by your own way because there are a lot of ways how to do this. For example, Stop lose under the low, high of divergences and take profit put 1:3.
And some examples of divergences.
BE PATIENT!!! The signals will be rare but very, very good.
I trade divergences for a 5 years. I developed my own style.
At first go there - http://www.forexfactory.com/showthread.php?t=573414
There is how I started my way.
Now, I must apologise - the people were a little fooled by me because I told, that there is a magical, special indicator for divergences. It's not true.
The best indicator for divergences is one and only - STOCHASTIC OSCILLATOR.
Yes, stochastic. The best indicator created by far. The succes of trading divergences is in parameters of stochastic.
In my practice I found 2 parameters which gives a very high probability that divergence will be profitable.
First stochastic parameters.
1) D period=1
2) slowing=1
3) Price field=close
4) MA method=simple
5) Turn off chech mark in max and min stochastic values
6) K period=500
Second stochastic parameters.
1) D period=1
2) slowing=1
3) Price filed=close
4) MA method=simple
5) Turn off chech mark in max and min stochastic values
6) K period=4000
Rules
Use both stochastics in the same time and chechk all trading pairs for divergences. You can trade two types of divergences - classical and hidden.
Trading timeframes - only H4, D1. It's in MT4 but if you trade in MT5, you can use H2, H6, H8, H12 as well. Do not trade H1, M30, M15.
Take profits and Stop losses you can do by your own way because there are a lot of ways how to do this. For example, Stop lose under the low, high of divergences and take profit put 1:3.
And some examples of divergences.
BE PATIENT!!! The signals will be rare but very, very good.
on your grail. although many people mock you, you keep the spirit. I will always follow your thread and thread about you.
