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EASY H1 trading using divergence and candle sticks

  • #1,501
  • Sep 14, 2016 9:44am Sep 14, 2016 9:44am
thnx for the reply piptime.. hardest thing of my world step 2
  • #1,502
  • Sep 14, 2016 10:21am Sep 14, 2016 10:21am
Patience is key. Divergence trading is not a glamours style of trading. You will take less trades then most traders...but that also comes with higher probability trades. I use to trade systems that would have me in the market all the time....I was not successful, I blew accounts. It wasn't until I started studying structure and candlestick analysis until I became profitable. Once I learned divergence and added it to my trading I stopped losing. Sure I take a loss here and there but might be 1 out of every 10 trades, honestly.
  • #1,503
  • Sep 14, 2016 11:36am Sep 14, 2016 11:36am
Quoting piptime
{quote} Hi KouKou, Check your message inbox. My trading style for Divergence is simple. I will list them below in order. 1. Structure. Find support and resistance 2. Wait for price to enter into support/resistance. 3. Verify Divergence has occurred. 4. Find valid candlestick to enter trade. 5. Set SL and TP. 6. Monitor trade. 7. MAKE MONEY! Seven easy steps to be successful! I know there is a lot to those steps, like understanding market structure, understanding price action/candlestick analysis, understanding divergence, where to set SL and TP....
Hello pipitime, how are you?
you are using a really great strategy. i have some questions in my mind regarding it.
1. what are the things which we should keep in our mind when the price is at support and resistance
2. if we observe divergence which says for a LONG but it is at a strong resistance what we should do
3.what is your opinion about about weekly pivot points

Thanks in advance.
green pips to all
  • #1,504
  • Sep 14, 2016 12:04pm Sep 14, 2016 12:04pm
Hello Andy ...anytime you can any comments on this trade would be helpfull
Attached Image(s) (click to enlarge)
Click to Enlarge Name: NZDUSDH1.png Size: 58 KB
Click to Enlarge Name: NZDUSDH1-2.png Size: 44 KB
  • #1,505
  • Sep 14, 2016 3:33pm Sep 14, 2016 3:33pm
Thank you Piptime for the indicators
  • #1,506
  • Sep 15, 2016 6:51am Sep 15, 2016 6:51am
Quoting samartha2
{quote} Hello pipitime, how are you? you are using a really great strategy. i have some questions in my mind regarding it. 1. what are the things which we should keep in our mind when the price is at support and resistance 2. if we observe divergence which says for a LONG but it is at a strong resistance what we should do 3.what is your opinion about about weekly pivot points Thanks in advance. green pips to all
Hello Samartha2,

Those are great questions, let me answer them. When price enters support or resistance its now time to start looking for divergence, usually it is already in the process of printing on your RSI. Once you notice divergence is occurring you start to look for reversal candlesticks. Examples would be pinbars, inside bars, railroad tracks, engulfing bars, etc etc. Im not sure I completely understand your last question. If you are saying that price is below the 30 on the RSI and divergence is printing but its at resistance then I would avoid this trade. It doesn't follow my trading rules so its not a valid trade setup. I think pivot points can probably be useful but I don't use them. I am in no way saying do not use them all Im saying is that I dont use them because I have been fine without them. Thank you for your great questions, if you have anymore please do not hesitate to ask.
  • #1,507
  • Sep 15, 2016 6:58am Sep 15, 2016 6:58am
Quoting koukou
Hello Andy ...anytime you can any comments on this trade would be helpfull {image} {image}
Hi KouKou,

You have alot of different analysis going on in this trade which is good! So based off divergence this would not be a valid setup and I have attached a picture as to why. You draw your lines on your chart and RSI from the last swing high and or last swing low. So as you can see in the picture below you have your line off a tad on the RSI and chart. But with the analysis you have drawn and there being a resistance at the 0.73000 level and a valid inside candlestick printing in that area this is still a great trade for scalping. I do trade divergence but I also trade based off price action and structure and based off of price action and structure this is a good trade, good job!
[
attach]2018383[/attach]
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd-h1-forex-capital-markets.png Size: 71 KB
  • #1,508
  • Sep 15, 2016 7:05am Sep 15, 2016 7:05am
Quoting jdforex75
Thank you Piptime for the indicators
You're very welcome!
  • #1,509
  • Sep 15, 2016 7:14am Sep 15, 2016 7:14am
[quote=piptime;9141084]{quote} Hi KouKou, You have alot of different analysis going on in this trade which is good! So based off divergence this would not be a valid setup and I have attached a picture as to why. You draw your lines on your chart and RSI from the last swing high and or last swing low. So as you can see in the picture below you have your line off a tad on the RSI and chart. But with the analysis you have drawn and there being a resistance at the 0.73000 level and a valid inside candlestick printing in that area this is still a great trade for scalping. I do trade divergence but I also trade based off price action and structure and based off of price action and structure this is a good trade, good job! [ attach]2018383[/attach] {image}[/quote

Really thnx for the comments Andy ...helpfull for me
  • #1,510
  • Sep 15, 2016 7:34am Sep 15, 2016 7:34am
Super news day today! Are you on the sidelines? You should be! Dont forget to look me up on twitter for real time trades @piptimefx and checkout my blog for yesterdays trading recap! Lets make some pips!
  • #1,511
  • Sep 15, 2016 9:31am Sep 15, 2016 9:31am
Quoting piptime
{quote} Hello Samartha2, Those are great questions, let me answer them. When price enters support or resistance its now time to start looking for divergence, usually it is already in the process of printing on your RSI. Once you notice divergence is occurring you start to look for reversal candlesticks. Examples would be pinbars, inside bars, railroad tracks, engulfing bars, etc etc. Im not sure I completely understand your last question. If you are saying that price is below the 30 on the RSI and divergence is printing but its at resistance then...
Thanks man. i read your blog. you are trading from UAE?
  • #1,512
  • Sep 15, 2016 2:18pm Sep 15, 2016 2:18pm
Quoting samartha2
{quote} Thanks man. i read your blog. you are trading from UAE?
I am trading from the United States.
How did everyone do today? I stayed out of the market the majority of the day, I took small scalps based off of price action for another profitable trading day.
  • #1,513
  • Sep 15, 2016 2:33pm Sep 15, 2016 2:33pm
So I just checked USD/CAD and a trade setup has occurred. I am away from my computer now but I will go over this trade later tonight once I get home. The entry candle is not clear on it, so I will show what to do in this situation. Actually it's what I do for every trade. Stay tuned because this is good information.
  • #1,514
  • Sep 16, 2016 3:02am Sep 16, 2016 3:02am
I had traded that pair. My first entry was not so clear but second entry show pinbar and easy to spot reverse candle patern.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADH1.png Size: 92 KB
Always think twice...
  • #1,515
  • Sep 16, 2016 6:31am Sep 16, 2016 6:31am
Trading on divergence with RSI is in my opinion one of the best there is. And on every timeframe. From 5M till 1D.
Keep it simple without too many crappy indicators!
  • #1,516
  • Sep 16, 2016 7:42am Sep 16, 2016 7:42am
Quoting kuhanicevap
I had traded that pair. My first entry was not so clear but second entry show pinbar and easy to spot reverse candle patern. {image}
Hi Kuhanicevap,

Great job! I love your exits, I can tell that you understand market structured based off your exit.
  • #1,517
  • Sep 16, 2016 7:43am Sep 16, 2016 7:43am
Quoting luvene
Trading on divergence with RSI is in my opinion one of the best there is. And on every timeframe. From 5M till 1D.
You are absolutely right! RSI for Divergence is the best!
  • #1,518
  • Sep 16, 2016 7:48am Sep 16, 2016 7:48am
There has been lots of setups recently on USD/CAD. Look at one of the examples of Divergence that occurred on USD/CAD.
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad-h1-forex-capital-markets.png Size: 65 KB


As you can see the candlestick to enter the trade at first is not so clear. So what you do in this situation and actually I recommend doing it all the time, is to switch to a lower timeframe. By switching to a lower timeframe you can find better entries and sometimes more clear entries. Below is a picture of the 15 min tf and how you would have spotted two entries before price took off.
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad-m15-forex-capital-markets.png Size: 79 KB
  • #1,519
  • Sep 16, 2016 9:55am Sep 16, 2016 9:55am
Seems like USD/CAD has been my go to pair this week. Here is another divergence trade from today's trading session.
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad-m15-forex-capital-markets.png Size: 38 KB


Price entered a resistance zone on the hourly chart. Switched to 15 min tf and found divergence and reversal candlesticks. Sometime you have to be patient for the market to turn in your favor. Study study study and then apply your knowledge then reap the rewards!

Follow me on twitter for live trades @piptimefx
  • #1,520
  • Sep 17, 2016 8:32am Sep 17, 2016 8:32am
thanks for your constant updates, was reading through this thread all yesterday and plan to back test over the weekend. Will try my look from Monday.
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