FREE FOREX STRATEGIES

Home

Complex trading system #3 (MACD Divergence)



Submitted by Edward Revy on April 19, 2007 - 16:55.

Currency: EUR/USD (preferred) or any other.
Time frame: 30 min.
Indicators: MACD (5, 26, 1) – draw 0 line,
Full Stochastic (14, 3, 3)
EMA 3
SMA 13

Trading rules: watch for divergence between the price on the chart and MACD or between price on the chart and Stochastic.


Read entire post >>>


 


Submitted by User on June 13, 2011 - 10:32.

hi edward,
if there is divergence, than how long the effect of this divergence?

»
Submitted by Edward Revy on June 13, 2011 - 15:21.

Divergence can develop for a prolonged period of time: the longer it lasts, the more impatient the market becomes, and thus reversals can be sharp. But sometimes the market reacts to the very first occurrence/sign of divergence.

As a trader, you can't foresee how long any particular divergence will last/develop. But you can use additional indicators/analysis to improve your timing on that.

Regards,
Edward

»
Submitted by User on June 15, 2011 - 22:24.

Diveregence along with pitchforks togeather is a great system. Look to get in at the birth of the move.

»
Submitted by User on July 23, 2011 - 16:56.

hello. what is pitchforks?

»
Submitted by User on July 23, 2011 - 17:01.

http://www.investopedia.com/terms/a/andrewspitchfork.asp

»
Submitted by User on September 8, 2011 - 06:29.

Thanks Edward for submitting this strategy. Have you used it recently? If you have, could you provide some numbers describing the success of this strategy?
Thanks a lot!

»
Submitted by User on March 8, 2012 - 06:48.

Hi All,

Could you please recommend the best available automatically indicators for:
* showing regular/hidden Divergence.
* foreseeing how long any particular divergence will last.

Thank you in advance.

Regards


  
»
« first‹ previous12345678

Post new comment