Demo trading my divergence system

TAjammy

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Basically the system is that once i notice divergence in MACD or stochastics, i watch the chart of whatever it is , find a support level, wait for price to fall below both the 60 EMA and that support as an entry- vice versa for buying.

Im new to forex so don't expect to be learning much form me in this thread, i hope people will give good advice as i know i've got a lot to learn.
 
Ok, so my first chart showing divergence is EUR/JPY. - right here- http://chart.ly/hwz8hp


unfortunately the pair just broke out of resistance :( but divergence was still there, this chart would only ever be worthy if it broke below that support.
 
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Ok people, another divergence spotted on the NZD/USD-this doesnt mean short it now, this means watch it, and wait for some good support to crack- good support seems to be around 0.64875
 
u misunderstand, showing one trade or two isn't proof...give it about 1000 trades first, although i would say after 200 you could say this probably does work...so proof is a few months or however long of testing.

also i've traded this way before...it doesn't work, you have to have a good understanding of what your trading so hours of screen time, good knowledge of fundamentals and studying few rather than many instruments trying to fit your system into all of them. Otherwise your just trading randomly (although it doesn't feel that way) esp on sub 15m...MACD can be useful though when price is at extremes and S/R is obv key, btw you can download another Macd indicator is tough spotting divergence on the standard mt4 1, good luck.
 
o btw i prefer to use stochs as divergence indicator, shows me buying/selling pressure is rising/falling
 
i have left this system on the sidelines for now, getting back to basics, trying to revert from the norm of 'buying the high, selling the low' and instead trade false breakouts and retracements , considering most breakouts fail
 
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