The sharp drop on the previous post offered the opportunity for a box breakout on a tight consolidation. Up to 120 pips depending on how it was played. Note: If your stop was not below the range box, then you were stopped out if you did not take profit at 10:15 PM
GBP/USD 5M followup of previous post
I AM LOOKING FOR BIG DIVERGENCES FROM THE MOVING AVERAGE, AGAINTST THE TREND FOR FUTURE SETUS. The charts for the GBP/JPY, GBP/USD and EUR/JPY showed big divergence closing out last week. Unfortunately the Pound pairs were with the trend. The EUR/JPY is in a channel. I prefer divergences to be against the trend. This may make the USD/CAD , USD/CHF, AUSSIE AND KIWI as the best likely trades as trends resume even though their divergences were marginal.
For entry I will be looking for the indicators to turn and higher highs to reverse to lower heights, and higher lows to reverse to lower lows and vice versa.
GBP/USD 4HR Perfect short entry SETUP !!!
Continue reading about Weekend Review (Divergence reversal Trading)
EUR/GBP 1HR STEALTH
This is the type of setup I am looking to find on 1 to 4 hour AND daily AND weekly charts prior to trade entries. This setup had all 4 indicators on the one hour chart and 3 indicators on the 4 hour chart along with the trend and a box breakout channel.
This setup was good for about 200 pips or 400 dollars in just 2 days on 1 minilot.
THE STEALTH SETUP IS:
- Arrow entry candle has just closed on 1 Hour chart
- Both Stealth LCD and BUY/SELL indicators are a go.
- Direction is with the trend.
Additional positive factors.
- Trendline bounce candle has just closed.
- Divergence has just occurred from the Moving Average against the trend is good.
- Daily and 4 Hour charts have confirming entry arrows and signals.
- Box breakout has just occured.
- Basicly the 1 and 4 Hour charts are the anchor charts and the 5 or 15 minute chart is used for entry. The anchor chart determines if I have an entry and the 5 minute is just fine tuning the entry.
- 4HR EUR/GBP SAME DAY
5M USD/CHF range box
USD/CHF 4HR PERFECT SHORT
