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This is the basis for divergence in my system, and not the candlesticks. As a comparison,
look at the second example. I applied 1 period Simple Moving Average (SMA) on the
candlesticks. The SMA is looks exactly like the price as it appears on the line chart. The 1
SMA and the line chart are basically the same. When looking for
divergence, be careful not to use the highs and lows of the candlesticks. Instead, look for
the highs and lows of the 1 period SMA or the line chart.
When the indicators begin to move up, even if the price is still going down, this means
that the price is beginning to gain some momentum in the upward direction. The current
downtrend is now weak, and a new uptrend will soon take place. To identify a bullish
divergence, the lines are drawn below both price and indicators, and the direction of the
lines on the indicators are going up even if the price is going down.
Bearish divergence is the exact opposite of bullish divergence. Here, the price makes
higher highs but the indicators are making higher lows.
In the first example below, I drew a line (A) to connect the highs of the price. On the
indicator windows, you can see that I drew lines (A and B) connecting the highs as well,
but this time, they are pointing down. The price is making higher highs, while RSI and
the CCI are making higher lows.
A bearish divergence indicates that price is losing momentum in the upward direction and
beginning to gain some momentum in the downward direction. The trend will soon
reverse.
To identify a bearish divergence, all lines are drawn above both price and trendline, and
the direction of the lines on the indicators are going down even if the price is going up.
Bullish divergence occurs when the price makes a lower low but the RSI or CCI makes
a higher low.
3. From the recent low that shows divergence, wait for a bullish candle to close within
the next two bars.
4. Enter long (buy) on the close of the candle.
5. Set the stop loss below the swing low.
6. Set the take profit 1:1 based on the stop loss level.
Heres a buy trade example of the EURUSD 5 Minute chart, a bullish divergence
occurred when the price was making a lower low as shown by line A, but the RSI 7 and
the CCI 7 were making higher lows as shown by lines B and C.
For buy trades, the trigger candle is the candle which closes in the direction supported
by the indicators. So, since lines B and were C sloping up, I looked for a bullish candle.
The next candle after the low was a bullish candle, so I entered at the close of that candle
at 1.36039. I then set the stop loss level below the recent swing low at 1.35952. I set my
take profit approximately the same distance of the entry to the stop loss level, at 1.36126.
In 15 minutes, I got out of the trade with 8 pips of profit.
Heres another buy trade example on the EURUSD 5 Minute chart. The SMA was
making a lower low (A), while the RSI 7 (B) and the CCI 7 (C) were making higher lows.
The next candle that formed after the lowest low was a bullish candle, so I entered the
trade as soon as it closed at 1.36101.
I placed the stop loss level below the recent lowest low at 1.35918, which is 18 pips
from the entry, and so I placed the take profit 18 pips above the price as well, at 1.36281.
The price was ranging for a while, but I kept the trade open to wait for price to reach the
take profit or stop loss. Eventually, the trade was closed with 18 pips of profit.
Sell
1. On the EUR/USD 5 Minute chart, wait for price to enter an area of interest, such as
previous support/resistance or round numbers.
2. Spot bearish divergence on the RSI and CCI with a line chart, or with an SMA 1 on a
candle chart.
Bearish divergence occurs when the price makes a higher high but the RSI or CCI
make a lower high.
3. From the recent high that shows divergence, wait for a bearish candle to close within
the next two bars.
4. Enter short (sell) on the close of the candle.
5. Set the stop loss above the swing high.
6. Set the take profit 1:1 based on the stop loss level.
1. On the EUR/USD 5 Minute chart, wait for price to enter an area of interest, such as
previous support/resistance or round numbers.
2. Spot bearish divergence on the RSI and CCI with a line chart, or with an SMA 1 on a
candle chart.
Bearish divergence occurs when the price makes a higher high but the RSI or CCI
make a lower high.
3. From the recent high that shows divergence, wait for a bearish candle to close within
the next two bars.
4. Enter short (sell) on the close of the candle.
5. Set the stop loss above the swing high.
6. Set the take profit 1:1 based on the stop loss level.
Here, we have another sell trade example. SMA 1 made a higher high (A) but the RSI 7
and the CCI 7 were making lower highs (B and C). This is a good bearish divergence
signal.
The trigger candle appeared when a bearish formed. So as soon as it closed, I entered a
sell trade at 1.35437. I then set the stop loss level above the highest high at 1.35537. I set
my take profit approximately the same distance of the entry to the stop loss level, at
1.35330 which was easily achieved in 30 minutes. I got out of the trade with 10 pips of
profit.
Tentukan arah.
Ikuti tujuannya.
Tentukan induknya
Gunakan Volume nya
Jika x=y+ x.....
Maka pucuk lembah yang didapat
#pusing