High probability trading strategies - page 4

[Oleksandr Medviediev]

Dr Matthias Hammelsbeck #:
What never never never change in a market?

Price movements!

They always take place. Always.

Could solely this fact be a foundation for a reliable trading strategy?

That's exactly what Sir Thomas DeMark said 88 years ago when he started to count candles and invented his TD-Sequential back in 1935.

You are on the right path.

[Fernando Carreiro]

⚠️ Direct or indirect discussions about Market products or Signals in the forum are prohibited and will be removed.

[shurdum]

Interesting thread. Hope it doesn't die out. Would be interesting if the author could add more trade examples of this system.

[Angelito Cartagena]

As far as I am concern, indicators are lagging in nature, this apply to stochastic and moving averages that are mentioned in this thread, if the market is trending well, it may work but if the market is range bound, its useless. Nowadays market are often rangebound, so indicators are not that useful, for me successful trading is all about anticipation, meaning you anticipate the move of the market before the actual move, place a trade and wait for it to happen, and this can only happen if you learn price action reading the candlestick charts.

[Oleksandr Medviediev]

There are 3 types of leading (non-lagging) indicators detecting certain matured conditions in the market (both trending and ranging) 

• divergence-based
• harmonics
• S/R

Therefore trading strategy based on these 3 would have tremendous advantage.  Candlesticks and Elliott waves are marvelous indeed to explain the past, but when it comes to predict next 5 pip move - can be a problem.

[henryjoy13]

I am so happy because there are many experienced members of trading available. Here I am newbie and beginner in trading that is why I want to connect with you. Please give me the right way of trading. Your guidance would be appreciated.

[Rafael Santos]

Bernhard Schweigert #:

Make attention to the picture below.

 

Chinedu Onuoha #:

This is a perfect cheat sheet for divergence. Thanks for sharing

The illustrated concept of hidden and regular divergence may be confusion, as this visual representations seem quite similar. Specifically, the trend lines are inverted, and the terminology differs. Could you please provide clarification on how to accurately distinguish between these two types of divergences in order to better understand their unique characteristics and applications?

[Oleksandr Medviediev]

Rafael Santos #:
The illustrated concept of hidden and regular divergence may be confusion, as this visual representations seem quite similar. Specifically, the trend lines are inverted, and the terminology differs. Could you please provide clarification on how to accurately distinguish between these two types of divergences in order to better understand their unique characteristics and applications?

In order for Regular Classic RSI Divergence to exist, Price must form one of the following:

• BEARISH Diver: Higher high than the previous high (but the oscillator is lower high)
• BULLISH Diver: Lower low than the previous low (but the oscillator is higher low)

Second type of RSI Divergence is Reversal ("hidden"). It indicated continuation of the trend and can be detected when Price forms one of the following:

• BEARISH Diver: Lower high than the previous high (but the oscillator is higher high)
• BULLISH Diver: Higher low than the previous low (but the oscillator is lower low)

It should be noted that Reversal (or Hidden) RSI divergence is relatively rare, but reliability of the signal is quite good.

Happy trading!

[Rafael Santos]

Oleksandr Medviediev #:

In order for Regular Classic RSI Divergence to exist, Price must form one of the following:

• BEARISH Diver: Higher high than the previous high (but the oscillator is lower high)
• BULLISH Diver: Lower low than the previous low (but the oscillator is higher low)

Second type of RSI Divergence is Reversal ("hidden"). It indicated continuation of the trend and can be detected when Price forms one of the following:

• BEARISH Diver: Lower high than the previous high (but the oscillator is higher high)
• BULLISH Diver: Higher low than the previous low (but the oscillator is lower low)

It should be noted that Reversal (or Hidden) RSI divergence is relatively rare, but reliability of the signal is quite good.

Happy trading!

Thank you!