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@  traderpusa : (10 September 2019 - 01:35 AM) that was my bmw lol. E60.
@  Monoaldo : (10 September 2019 - 01:34 AM) E60
@  manfloy : (09 September 2019 - 11:12 AM) well said.
@  traderpusa : (09 September 2019 - 11:07 AM) at least for the moment, china will hold back because of economic conditions. My guess is they want to involve PLA but simply are not in a position to do so for the moment.
@  traderpusa : (09 September 2019 - 11:05 AM) well, regardless of any agreement between uk and europe, there is still nato is trump doesn't blow it up lol
@  manfloy : (09 September 2019 - 11:04 AM) I am really worried about HK if the PLA phase in this can interrupt the entire chain between FX liquidity and current import / export countries. I understand that we have a bunch of corporations exposed to China, now believe that 99 percent of them are stable in HK because they have a high law. If the PLA gets in, they'll substitute this economic centre with a singapore.
@  manfloy : (09 September 2019 - 11:04 AM) Yeah, they're really a very significant player. I am informed that there is also a lot more than economic, for instance there are a number of military agreements agreed between the GB and the EU, which is serious.
@  traderpusa : (09 September 2019 - 11:02 AM) the UK being part of the EU GDP figures, but not part of the Euro only makes things a bit complicated on how to interpret numbers for trading purposes.
@  traderpusa : (09 September 2019 - 11:00 AM) of course one needs to focus on US being the biggest economy but UK is still up there. https://gyazo.com/42...39df1c7c58d9221
@  manfloy : (09 September 2019 - 10:56 AM) I'm focused on the US, so I don't spend so much on the GB, I'm supposed to study it well since 2015, but something has altered worldwide, literally, it's an enormous step in the world's liquidity and global system, modifications are nice, but they're really colorful.
@  manfloy : (09 September 2019 - 10:56 AM) thanks good reading
@  traderpusa : (09 September 2019 - 10:53 AM) As to China, read this over the weekend : https://apnews.com/6...f75f013bf54e6a9
@  manfloy : (09 September 2019 - 10:51 AM) Spectacular indeed lol, this is huge to be honest
@  traderpusa : (09 September 2019 - 10:47 AM) it's gonna be interesting. MP's are leaving the sinking ship and now also Bercow has resigned. Gonna miss this guy lol
@  traderpusa : (09 September 2019 - 10:46 AM) https://gyazo.com/58...16d785753060ff0
@  manfloy : (09 September 2019 - 10:44 AM) I am very concerned about GBP, I have decided to leave until the government is making some definite deals on the Brexit. I'm not a supporter of uncertainty.
@  manfloy : (09 September 2019 - 10:42 AM) US It is expected to rebound until new years, because the season is coming and everyone is ready for new year revenues.
@  manfloy : (09 September 2019 - 10:41 AM) China is underwater now, and I can't even define how starving they are for dollars. Their imports fell significantly last quarter. They're trying to stimulate again, but I don't think it should work out, more than: we're back to the 2014/2015 situation. The issue with the Chinese central bank cutting off the supply of cash, the issue that they are not diversified around the world.
@  manfloy : (09 September 2019 - 10:41 AM) https://gyazo.com/25...967a0945fa48037
@  traderpusa : (09 September 2019 - 01:49 AM) Trump should wake up and tweet something lol

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Trading Divergences - Extremely Powerful Concept

rsi divergence divergence binary options

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131 replies to this topic

#1 gabim70

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Posted 06 June 2017 - 03:26 PM

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           Hello traders! Today I want to show you an old concept that really work when it is used properly. 

 

   The concept is based on RSI divergences. The RSI period is 14 and we will look for divergences that happens only in the overbought or oversold areas. The strategy is more accurate when the previous candle before entry candle breaks the upper or the lower Bollinger band. On the 1 min timeframe we will take a 5 min trade. The results are pretty accurate! 

 

 

tDVTHhz.png


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#2 juanchitox06

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Posted 06 June 2017 - 04:29 PM

excelente examples but, witch is the signal? because you can see it after give you de entrance...


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#3 gabim70

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Posted 06 June 2017 - 04:54 PM

excelente examples but, witch is the signal? because you can see it after give you de entrance...

The signal candle is a reversal one that is forming while on the RSI you are seeing a divergence in an oversold or overbought area. 

 

xyEEBY3.png

 

bl3iBNv.png


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#4 gabim70

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Posted 06 June 2017 - 05:10 PM

   As you can see, the logic behind this concept is very solid. In most of the cases, when you see a divergence on an overbought or an oversold area, a reversal is going to happen.

 

NaMdLxQ.png


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#5 shaileshm

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Posted 06 June 2017 - 06:57 PM

My own experience is that divergences do not work that easily on real time. It would be very difficult to take the entries on the charts live.


Know Thy Setup. Know Thyself.

#6 Sanz50

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Posted 06 June 2017 - 07:21 PM

Look nice in the history but live the price move difrent. For exampleYou cant catch the entry point if price is on waterfall,



#7 MTH2014

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Posted 06 June 2017 - 08:14 PM

Well, Divergence (and Convergence) is a 'real' trading concept to early inform you visually that 'something happen' in the market..

but you must look at this concept as a whole, not only point to point different between your oscillator tools and your main chart price movement..

first, use your common sense.. , can you explain in logical way ,  why you use period 14 for RSI on TF M1 ? on close price ? and that bollinger band on main chart with period 20 on close too..?

 

So, as long as you know nothing about that and you can't answer in 'make sense' way.. then simply you don't know how to work with Divergence and Convergence..

and for more technical base question.. why RSI and not MACD ? or why not using both ?

 

MTH
 


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"Some are faster, some are slower, and some will never get it...lol" "You may be right but certainly not the only one...  So, remove that smug smile from your face" :P

"If you are too proud of yourself right now, sooner or later the reality will hit you" "with flock of penguins around me, I will always feel the warmth and happiness"

"if you don't want to ask when you learn, you will never be asked in the future and that means you become nobody"


#8 MTH2014

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Posted 06 June 2017 - 10:00 PM

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Ok instead of answering by PM, I give you the example of more 'common sense' setting of both oscillator and main chart indicators for this Con/Div set up for M1 Chart.. here we go..

 

screenshot_160.png

 

As you could 'see' that I marked 'next candles' after the divergence point with vertical lines, this is to make sure that the moment is a divergence moment.. so I draw my Equidistant Channel as divergence area marker.. base on that..to measure how 'thick' the Supply or Demand Areas might be..

 

If you want to 'mastering' the Convergences and Divergences moment analysis, you should also learning about Arthur Merrill M and W patterns in relation with Bollinger Bands and ZigZag..

Usually I use this Con/Div on Daily Chart but I believe it could work in any TFs

 

Hope it help

MTH

 

Attached File  M-and-W-Patterns.pdf   851.79KB   524 downloads


  • neddihrehat, Singh, sehanw and 14 others like this

"Some are faster, some are slower, and some will never get it...lol" "You may be right but certainly not the only one...  So, remove that smug smile from your face" :P

"If you are too proud of yourself right now, sooner or later the reality will hit you" "with flock of penguins around me, I will always feel the warmth and happiness"

"if you don't want to ask when you learn, you will never be asked in the future and that means you become nobody"


#9 vouytee

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Posted 07 June 2017 - 02:36 AM

Ok instead of answering by PM, I give you the example of more 'common sense' setting of both oscillator and main chart indicators for this Con/Div set up for M1 Chart.. here we go..

 

screenshot_160.png

 

As you could 'see' that I marked 'next candles' after the divergence point with vertical lines, this is to make sure that the moment is a divergence moment.. so I draw my Equidistant Channel as divergence area marker.. base on that..to measure how 'thick' the Supply or Demand Areas might be..

 

If you want to 'mastering' the Convergences and Divergences moment analysis, you should also learning about Arthur Merrill M and W patterns in relation with Bollinger Bands and ZigZag..

Usually I use this Con/Div on Daily Chart but I believe it could work in any TFs

 

Hope it help

MTH

 

attachicon.gifM-and-W-Patterns.pdf

So solid content here. So many practical tips when use indis. So sad that I see here on BOE useful post like this realy seldom. Respect @MTH2014


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#10 BOedge

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Posted 07 June 2017 - 04:26 AM

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@gabim70 thank you for your suggestion and the time you took to post example and also to explain more details.

 

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@the others - why on earth can you not simply try it before you trash it!

 

waterfalls: no claim has been made that this is a 100% strat! And not every BB break or RSI obos is a waterfall. As is clearly visible from the examples. Nor is it said that one must take every potential set up. Learn how to avoid waterfalls. Learn how to pick the better set ups. Simple enough. No one here claimed that use of brain is not required.

 

settings: if those settings work, they work. Regardless of other logic. If other settings work, then they work too. If other settings may improve strat, wonderful. Then that would be an addition instead of aiming to invalidate the original poster.

 

The tone used here when people try to contribute is just appalling. Everything negative that has been said here can also be put in a constructive way.   Getting really, really, really sick of the high and mighty attitude by some. Make one wonder how many contributions are lost because people choose not to subject themselves to any of this.

 

Rant over.


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#11 gabim70

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Posted 07 June 2017 - 05:09 AM

Look nice in the history but live the price move difrent. For exampleYou cant catch the entry point if price is on waterfall,

 

There are some conditions for entering a trade to avoid waterfall. LKQ2OPc.png


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#12 gabim70

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Posted 07 June 2017 - 05:32 AM

nE9rGXE.png


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#13 PTX

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Posted 07 June 2017 - 06:25 AM

@gabim70

This is very interesting and well explained, thanks for sharing.

Have you seen that "80%+ ITM Strategy" envolving engulfing long-wicked tweezers? It is a 5m TF chart 20-30m expiry strategy for trading reversals, but maybe it could work on 1m TF chart and hella strenghten your analysis technique.

I'll do the testing later (08:25 a.m here) if market is fine..

Thanks again!
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#14 gabim70

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Posted 07 June 2017 - 07:33 AM

Guys.. if you respect the rules above, rarely you will have a loss. This strategy is very accurate.

 

llieFtf.png


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#15 homero15

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Posted 07 June 2017 - 08:06 AM

Very good, trying to trade the market using PA and divergence and not just following indicators is great, it takes learning and patience and etc, but this is what trading is, when you master it, you will get satisfaction and $$$$  :P ,apretiate the simplicity.


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#16 gabim70

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Posted 07 June 2017 - 08:15 AM

a8vNZWF.png


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#17 homero15

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Posted 07 June 2017 - 08:31 AM

Is this also OK? drawing the div lines from the outside of BB? my drawing is horrible  :(

 

UJcTAXc.png


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#18 Alfred

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Posted 07 June 2017 - 08:34 AM

nE9rGXE.png

hi gabin70, why don't you take the trade just before the point 1in your diagram. I also see an RSI divergence there. Thank you, Sorry I see my mistake. There is no divergence



#19 baryster

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Posted 07 June 2017 - 09:47 AM

Hi guys, i started trying this strategy right now, and there was a divergence on eurusd just 10 minutes ago.. but it resulted in a loss.. did I do everything right? 

 

pxLlv0U.png



#20 Sanz50

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Posted 07 June 2017 - 10:13 AM

Very good, trying to trade the market using PA and divergence and not just following indicators is great, it takes learning and patience and etc, but this is what trading is, when you master it, you will get satisfaction and $$$$  :P ,apretiate the simplicity.

RSI is an indicator







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