somebody did say that trading should be boring, and when it is you know you have made it.......................i guess they mean all the screen watching but seriously i have no problems with that just think an alert or pre warning signal to my mobile or sound an alert would save some time thats all.
here is the pattern below......................i use ninja trader and tradestation, i like ninja because it has the fastest reliable feed in zen fire and also has the dom which is great for seeing walls or fakes....................from my testing this pattern produces unbelieveable results but like i said it does not come along too often so patience is key................you would make money for sure if you just followed this pattern........the good thing about too is it works best when markets are in a range, so if you wanted to you could just trade ranges with it........There's not many traders that like trading ranges because of the fakes but with this you could.
The pattern does not work as well on slower markets though like the ftse, i found it is most reliable on fast moving volotile markets such as dax, er2 and es
The pattern does not work as well on slower markets though like the ftse, i found it is most reliable on fast moving volotile markets such as dax, er2 and es
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rathcoole_exile
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hi have not psted for a while but still doing divergence.
Last week i drove up to shropshire , telford and traded with 2george from this bb forum....Something i learnt form george that day was the way he uses trendline cuts and supprt and resistance differently to me. He basically waits for divergence first always, then second he finds his stop based on cci +100/-100 crosses, finally he draws a trendline ffrom the starting candle of the last trend and waits for price to cross and enters when candle opens above or below that trendline. He takes signals in that order only being divergence first and trendline cut last and if it does not come along in the correct order he does not take the signal........Its not perfect but ive been tested along side my own divergence patterns and it works well especially the cci stops and if you wait patiently enough for the trendline to cut (the longer the trendline the better) signals are improved..so thankyou george for the day and the extra filters that have improved my own system.
thought id share my thoughts as like you all im still very much looking for improvements, but i think using TA alone the very best we can all hope for is around 7/10 winning trades with a good r/r money management to follow, this in my honest opinion that the very best we can achieve and that goes for any system using TA alone.
Another thing i have found in the last couple of months is using the indicator to pick my exits and profits is not so good and i end up more or less at breakeven due to some whipsawing effects, but my thinking now is to use fixed profit targets i can safely achieve and not to worry if ive exited too early. I think it could work well r/r providing as it also takes alot of emotion out of the trading as by using a fixed profit target you either win or lose....also being aware of what market is doing cycing wise is vital and my own system works better when market is oscillating after a big move as i can scalp in both directions.
anyway what do u guys think?, any suggestion on how i can turn this system from being a very slightly profitable one (so far to date), to being a consistently profitable one?, or is it just not possible as using TA alone there are no guarantees?...my thinking now is that maybe im at the best this sytem can be and the only way forward now would be to combine it with FA as grey1 does to find weak and strong stocks accordingly and basket trade them using my own system here, this would certainly reduce overall risk as im spreading the risk out, and not only that i would be spreading the risk out amongst weak and strong stocks and trading them in that direction accordingly.
regards,
jason
Last week i drove up to shropshire , telford and traded with 2george from this bb forum....Something i learnt form george that day was the way he uses trendline cuts and supprt and resistance differently to me. He basically waits for divergence first always, then second he finds his stop based on cci +100/-100 crosses, finally he draws a trendline ffrom the starting candle of the last trend and waits for price to cross and enters when candle opens above or below that trendline. He takes signals in that order only being divergence first and trendline cut last and if it does not come along in the correct order he does not take the signal........Its not perfect but ive been tested along side my own divergence patterns and it works well especially the cci stops and if you wait patiently enough for the trendline to cut (the longer the trendline the better) signals are improved..so thankyou george for the day and the extra filters that have improved my own system.
thought id share my thoughts as like you all im still very much looking for improvements, but i think using TA alone the very best we can all hope for is around 7/10 winning trades with a good r/r money management to follow, this in my honest opinion that the very best we can achieve and that goes for any system using TA alone.
Another thing i have found in the last couple of months is using the indicator to pick my exits and profits is not so good and i end up more or less at breakeven due to some whipsawing effects, but my thinking now is to use fixed profit targets i can safely achieve and not to worry if ive exited too early. I think it could work well r/r providing as it also takes alot of emotion out of the trading as by using a fixed profit target you either win or lose....also being aware of what market is doing cycing wise is vital and my own system works better when market is oscillating after a big move as i can scalp in both directions.
anyway what do u guys think?, any suggestion on how i can turn this system from being a very slightly profitable one (so far to date), to being a consistently profitable one?, or is it just not possible as using TA alone there are no guarantees?...my thinking now is that maybe im at the best this sytem can be and the only way forward now would be to combine it with FA as grey1 does to find weak and strong stocks accordingly and basket trade them using my own system here, this would certainly reduce overall risk as im spreading the risk out, and not only that i would be spreading the risk out amongst weak and strong stocks and trading them in that direction accordingly.
regards,
jason
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jayjay121, hi.
I am trying to trade what was taught to me as Reverse Divergence. From talking to various people it seems other may call it divergence or negative divergence. Whatever it is called, it's a continuation pattern.
I get some successful trades and some really crappy trades. my backtesting always looks great but i just can't seem to convert this strategy into consistent real world profits.
I wouldn't mind comparing notes with you sometime to make sure I've got the strategy identified correctly.
I am trying to trade what was taught to me as Reverse Divergence. From talking to various people it seems other may call it divergence or negative divergence. Whatever it is called, it's a continuation pattern.
I get some successful trades and some really crappy trades. my backtesting always looks great but i just can't seem to convert this strategy into consistent real world profits.
I wouldn't mind comparing notes with you sometime to make sure I've got the strategy identified correctly.
fibonelli
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If you want to trade trend continuation divergences, you must filter the signals through other TA techniques.
Suffice to say, some signals are more equal than others.
jayjay, attached is an example of a trade i would take. tell me do you think this strategy is reliable on 5 minute charts? appreciate your thoughts.
Attachments
If you want to trade trend continuation divergences, you must filter the signals through other TA techniques.
Suffice to say, some signals are more equal than others.
i like you idea but i don't have the experience to know what to combine, can you point me in the right direction?
thanks.
Have a go at looking for regular divergence on a smaller t/f. This usually does the trick. It work's for me anyways
Don't take this the wrong way, all that chart shows is an example of a hidden/negative divergence.
I would imagine most people reading this or who you would want to help you are going to fully understand what a hidden/negative divergence is.
I would have expected a t/f, MACD setting etc etc
i have a very good method right now and the strikerate is good 6.5/10 which i mentioned before. Im now just playing with trailing stops, fixed stops, fixed profit tragets to see what works best as I truely beleive the system is as good as it can be part from using mark's idea of then going to even smaller timeframe to filter futher for entry. I must admit the reason so far for me not able to make a profit is the fact my r/r is always below 1/1 which many of you have advised me to change. Initially this was hard to alter mentally but It does improve the system and Ive had to swith indicators to a cci instead of my usual triple wave as the triple wave exhausts too early where cci keeps me in the move for longer hence better r/r. Most trades still breakeven or trail the stop for small gains but catches big moves well in the 3 min t/f. Patience is the key and the disciplne to wait and the disciplne again to see many breakeven or losing trades go before you before you actually catch the move. I still use triple wave for entry but not for exit or management of trade. I have found trailing stops work well and moving stop to breakeven as soon as possible. These small changes have made a big difference to the system. Before i was too busy looking for perfection like 90% strike rate, well now i realise there is no perfection in trading and we must accept losses.
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I use STO not the MACD, STO is set at 13,5,8. I use the 5min t/f for my trades but see the Strategy working from 5min to daily.
hİ,
I believe divergence analysis is a very powerful analysis.Thomas De Mark says'' divergence is a symptom not the cause'' but I believe, without the symptoms one can not detect the cause.I am drawing lines on MACD as well as identifynig the divergence patterns.There are whipsaws just like any trading style.But Drawing trendlines keep me on the trend.I draw the trendlines on MACD according to highest high or lowest low of the price.
I believe divergence analysis is a very powerful analysis.Thomas De Mark says'' divergence is a symptom not the cause'' but I believe, without the symptoms one can not detect the cause.I am drawing lines on MACD as well as identifynig the divergence patterns.There are whipsaws just like any trading style.But Drawing trendlines keep me on the trend.I draw the trendlines on MACD according to highest high or lowest low of the price.
Youtube Divergence Vid....
For those that are unsure about Divergence I found this video on Youtube. It does not give you a divergence system it does however show you exactly how to find divergence and it is explained extremely simply.
YouTube - Technical Analysis - MACD Divergence
For those that are unsure about Divergence I found this video on Youtube. It does not give you a divergence system it does however show you exactly how to find divergence and it is explained extremely simply.
YouTube - Technical Analysis - MACD Divergence
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