I've seen a few free and also paid divergence indicators but I always did it manually.shinnosuke wrote: Fri Aug 18, 2017 8:08 pm
yes, i agree.. on big TF is more reliable.
but in my opinion, if we use it on 1H we can have a good Risk Ratio Reward on each signals.
do you have a good indicator for divergence to share mades?
You can say every single indicator or approach is miles away from holy grail. Use divergences/convergences as leading indicators among others with high synergy as some scalpers do and you can use it with a very high hit rate on every tf you want, also easily against the trend. I scalp on M5. Volatility on M1 is too low for me, but not different at all. Don't use scripts to search for divergences, always do it with your own eyes. Than it is extremely fast and reliable. Swing traders are also very happy for divergences in their direction.mades wrote: Fri Aug 18, 2017 6:33 pm Divergence is miles from holy grail, especially because it lags even more than normal indicators. Also it is extremely unreliable if not used on very high TF (4H min).
I understand, but to me as a scalper, any signal coming from divergence is either too late (you wait for confirmation) or just 50:50 risk (it works out or it won't). The time problem isn't so important on high TFs.Krelian99 wrote: Fri Aug 18, 2017 11:45 pm
You can say every single indicator or approach is miles away from holy grail. Use divergences/convergences as leading indicators among others with high synergy as some scalpers do and you can use it with a very high hit rate on every tf you want, also easily against the trend. I scalp on M5. Volatility on M1 is too low for me, but not different at all. Don't use scripts to search for divergences, always do it with your own eyes. Than it is extremely fast and reliable. Swing traders are also very happy for divergences in their direction.
Do you mean 50:50 risk/reward or that your divergences have an hit rate of 50%. It always works or doesn't. Why you don't use S/R, Japanese candle sticks like engulfing and the patterns with long wicks, TLs and channels, price chart patterns (Double Top/Bottom, SHS, Triangles) or one or two more tfs to confirm?mades wrote: Sat Aug 19, 2017 2:54 am I understand, but to me as a scalper, any signal coming from divergence is either too late (you wait for confirmation) or just 50:50 risk (it works out or it won't). The time problem isn't so important on high TFs.
I meant 50% chance. All those things (beside S/R taken from higher TF or to-the-pip reversals) you mentioned are super unreliable on 1M, price can and does easily 20-40pip zigzags in a matter of minutes (which as you surely know is damn deadly for any dayscalper). Confirming the signal on 15M candlestick means you can lose the major move. Divergence is nice and everything, I keep MACD on my 1M chart (with super high settings to smooth the price) but from what I learned after many hundreds of hours of charting time is, that scalping 1M especially needs a very unique approach in order to capture the dynamics of daily markets, which is usually oscillating between almost no movement and very aggressive and quick ups or downs (latest example is last fridays EURUSD), which can be either fake or real daily trends. There is not a single one indi that would be able to filter out all or even most fake moves so you need a combo of well selected and properly setup trend-following indis and look for confluence of signals. Stuff like candlestick engulfing on 5M is problematic and the easiest way to prove it is just plot an engulfing detector indi on 5M. I tested all pattern detectors on low TF's (1-5M) and found them all too unreliable with the only exception being a pinbar on 5M. Oddly enough, pinbars fail more often at 1H than on 30M and on 15M than on 5M. It's one of those things where FX feels really random.Krelian99 wrote: Sun Aug 20, 2017 12:03 am
Do you mean 50:50 risk/reward or that your divergences have an hit rate of 50%. It always works or doesn't. Why you don't use S/R, Japanese candle sticks like engulfing and the patterns with long wicks, TLs and channels, price chart patterns (Double Top/Bottom, SHS, Triangles) or one or two more tfs to confirm?
M1 is a tf for BO, when you have a BO system, you can scalp a few pips. Safer and better for decisions is M5 and the spread is smaller relative to the wave. Why you want to trade EURUSD? This is a pair for pros. To many big traders with many different intentions. Stay on volatile pairs with smoother waves like GBP pairs. Scalping always needs a very unique approachmades wrote: Sun Aug 20, 2017 7:33 pm I meant 50% chance. All those things (beside S/R taken from higher TF or to-the-pip reversals) you mentioned are super unreliable on 1M, price can and does easily 20-40pip zigzags in a matter of minutes (which as you surely know is damn deadly for any dayscalper). Confirming the signal on 15M candlestick means you can lose the major move. Divergence is nice and everything, I keep MACD on my 1M chart (with super high settings to smooth the price) but from what I learned after many hundreds of hours of charting time is, that scalping 1M especially needs a very unique approach in order to capture the dynamics of daily markets, which is usually oscillating between almost no movement and very aggressive and quick ups or downs (latest example is last fridays EURUSD), which can be either fake or real daily trends. There is not a single one indi that would be able to filter out all or even most fake moves so you need a combo of well selected and properly setup trend-following indis and look for confluence of signals. Stuff like candlestick engulfing on 5M is problematic and the easiest way to prove it is just plot an engulfing detector indi on 5M. I tested all pattern detectors on low TF's (1-5M) and found them all too unreliable with the only exception being a pinbar on 5M. Oddly enough, pinbars fail more often at 1H than on 30M and on 15M than on 5M. It's one of those things where FX feels really random.
that's why you don't find scalping systems out there you can adapt right away. MACD to smooth the price? Why you want to smooth the price? What should a MACD show you with high settings? It can't properly work as momentum indicator anymore and divergences become rare. Can it be that you try to adapt a trend system for scalping? Then, when you have all signs of weakness and of strength, you can begin to interpret them. Where do the signs appear and why do they appear right there and not somewhere else. One example: when they hammer out a bottom, you have 3 or more long wicks in a row. Often an emerged divergence, a strong S/R you should also find here and this only on one tf! Pretty fast you will understand that the market only can move in one direction, even when they build a fakie you can stay calm because you KNOW it can't be a real Break Out. Believe me, FX isn't random at all, never, it's extremely predictable. I did that long time till I understood, I don't need to predict it. Just read the market and ask the right questions. And when you loose one out of ten, who cares.You don't really need to educate me on things I already know. You wrote a ton of basic known stuff and you should assume traders here are a bit more advanced. Sorry but your post is also a combo of observational approach ("3 long wicks"), belief system ("you KNOW it can't be real"), some stuff I already mentioned (confluence of signals), some other stuff I agree on and have no idea why you would include it (I don't believe in EMH and randomness of FX).Krelian99 wrote: Mon Aug 21, 2017 7:24 am
M1 is a tf for BO, when you have a BO system, you can scalp a few pips. Safer and better for decisions is M5 and the spread is smaller relative to the wave. Why you want to trade EURUSD? This is a pair for pros. To many big traders with many different intentions. Stay on volatile pairs with smoother waves like GBP pairs. Scalping always needs a very unique approach
I never said you should look only for Engulfing or wait that the divergence on M15 has confirmed itself. Look for emerging divergences on M5, than price action (long wick(s)? gaps?). Look on M1 whether there are signs for a reversal - here is maybe already a Double Top/Botttom or also a divergence. Then look on M15 for S/R, possible divergence and so on. A single sign of weakness/strength is useless, but 3 or 5 signs are very good. Combine approaches with synergy and speed. It's not black/white trading like in trading trends, you must stay dynamically. Keep it simple that you can read the chart quickly.
The first step is to look what you have on the chart. No interpretation at all at first (when you do so, you begin to wish and look only for signs in one direction and then you will loose very often. We don't wish, we know what we do
Observational approach is when you make something up like "3 long wicks" which we could call TA fallacy. Or fancier word "Apophenia" (look it up). Trading should be about rules and system rather than about subjective conclusions or beliefs, any system can make money if its tuned and followed properly.Krelian99 wrote: Mon Aug 21, 2017 3:48 pm You confuse me. Trading Forex is always about observation and interpretation. When you use indicators for that, they observe and interpret the market for you and you must interpret the indicator but you quit a lot of important information. Indicator can give you important additional information, but for that you must understand you indicator and here is the lag of most indicator users. They don't understand their indicators because they don't know the basics of trading. We all made the same mistake and used indicators right from the start. Question: how you read a given chart like a momentum-speed of rotation-chart or time-frequency-chart of a given system when you don't know what you are looking at. Is it purposeful to apply fancy indicators as first step? I guess no, because you don't know the system behind. But why you do it here on a price-time-chart and when you can loose money? Wouldn't it make sense to know what and how moves the market, who trades and why? Before you don't know that it doesn't make sense to try trading in an efficient manner.
So, your questions a scalper wouldn't ask. These are questions for beginners and they are quite meaningless because they are pretty clear when you analyze a chart knowing the basics. I don't want to be disrespectful at all but you trade against pros with many years of experience and much more liquidity as you have. Noone benefits when you loose your money. A 1.000€ or 10.000€ win for a big bank is nothing. You only have one chance: Learn and ask the right questions, build a stringent system around your cognition and optimize it for your personal style. Repeat and repeat.
Ok, we better stop it here, but isn't it funny you make all the beginner-mistakes we all made once (and even more). It is ok to make beginner-mistakes, but not listening is always a cardinal error. Maybe indicators can also teach thismades wrote: Mon Aug 21, 2017 5:20 pm Observational approach is when you make something up like "3 long wicks" which we could call TA fallacy. Or fancier word "Apophenia" (look it up). Trading should be about rules and system rather than about subjective conclusions or beliefs, any system can make money if its tuned and followed properly.
Indicators teach traders two important things: discipline and patience.
The basic questions are the most important ones and scalper needs to think in advance because price can change any minute. You can't observe 10+ pairs at once when timing of your entry is crucial.
It absolutely doesn't matter who you are trading against (and you don't know it either, can be broker, other traders or other institutions). Those who move the charts trade against those who can fill their orders. The question you asked is meaningless with made-up expressions.
I don't want to hijack this subthread. It is also pointless and should be moved somewhere else if mods allow. You can have the last word, but I won't react anymore because your replies sound aggressive and supercilious.