Right, and I see that MACD really did not give you the same divergence.

So, just publish your signals and we'll all trade from them!

Bryan

There is MACD Histogram divergence.

Now now Bryan, that would take the fun out of it!

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I suppose I should let you guys know that I've been tracking Running Volume (with a calculator & a pencil) religiously on the 4H USD/CAD Pair with a 10 Bar William's %R calculation ... that is ... after the latest 4H Bar prints ... I incorporate that Bars Volume into the last 9 Bars as the 10th bar drops out ... and so on and so on ... hence the term ... Running. Yes, it has added to my workload ... but Now I will not Trade without it as this variable has been the missing link between my Daily calculations and my 15 Min. scalping screen. Because everything pertaining to Trading comes down to a mathematical calculation for me ... divergence is quickly recognized first-off in the waxing or waning of these percentages every 4 hours and breaks every Day into six easy pieces for a mathematical History ... giving the leaning for the coming Day as the US Open approaches each morning. These Volumes are available on any FXAccucharts screen ... by clicking on the Bars.

Hi Greg,

I thought I had a good grasp of "divergence" until I ran across a discussion which referenced "hidden divergence." HD apparently is a signal that a trend likely to continue rather than reverse. Is that right? Thanks!

You are right. Hidden divergence indicates the strong possibility of a trend to continue.

When a currency pair is making a higher low, but the oscillator is making a lower low, this indicates hidden bullish divergence.

On the other hand, if a currency pair makes a lower high, but the oscillator makes a higher high, then it is considered hidden bearish divergence.

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Gregory McLeod moderates the Trend of the Day thread as well as the Short Term Strategies Using Market Depth.

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Oh, the US session can be a frustrating thing. For the second day in a row, I have been doing great early in the morning, only to be caught in reversal hell after about 9;30 am. Funny thing is, both days, I have been up about 100 pips, then my indicators go nuts and I lose all my progress with a string of losers. I really need to limit my trading time to 9:30. I definitely think I would be ahead. Live and learn

yeah i had the same problem around 9-9:30. trading the 15min charts was fine in london. then after new york my indicators kept crossing then uncrossing.

Try calculating a William's %R using the 4H Bars ... ongoing ... after a few weeks You will begin to see something that's Pretty Damn Cool. It has the effect of making me wait ... 8 extra Hours ... in order for the remaining "Last" Hands to turnover before I get in. This Patience or "Delay" in the numbers allows "ALL" of the remaining players from the Last Swing to turnover. This one's a Keeper. And You can set your Limits as conservatively as You want "Knowing" that ... even if the Market doesn't Swing 200 or 300 pips this Time ... you can pretty well seal in 50 or even 100 pips because of the volatility. So far it's been yielding at least two Trades per Week.

How is this indicator different from RSI? And how have you been using it for your entry and exits?

Thanks!
Bryan

Hey Bryan,
Here is a site that has a pretty good description of different indicators.
Technical Indicators and Overlays - StockCharts.com

Yeah, actually that's where I read about this %R one. I just wondered -- it looks like it acts the same as RSI. And I wondered how our friend used it to trade with.

I have stopped scalping for now. It was so stressful and I need to learn more about longer term trades in currencies first, I think. There are so many reversals and strong trend changes... you can really get caught offguard if you're not careful. And I'm not, yet. I've been posting on the Candlesticks and the currency pair forums lately.

Like any other indicator ... just get a book on how it is calculated and implemented for gaining an Edge. I've been using the William's %R for years for my Weekly and Daily calculations ... using it on the 4H has been since the First Week of January of this Year ... and as I've mentioned ... it is the missing Link between the Daily and my 15 Min. Scalping Screen. This indicator is a Volume calculation ... and the FXAccucharts Platform that I have gives Volume for every Bar printed. Since coming over from Trading the Soybean Complex 3+ years ago ... trading on Volume was what I got used to so it was ingrained in me. I realize that many Forex Traders haven't considered Running Volume as a viable indicator ... yet ... it is a Strength Indicator much like RSI in that it is measuring Buying and Selling strength by measuring Volume of Traders in and out. Like I said earlier ... I still keep a Running Tab with pencil and paper as opposed to a Screen Indicator for this one as I like to have each 4H percentage in front of me on paper. Volume is the cause (supply & demand) ... Price is the effect (outcome). One of the Books that started it all for me is Christopher Stanton's "The Hitchhiker's Guide to Futures and the Laws of Thought" ... from there I researched all aspects of Volume and Float Analysis and settled on the 10 Week ... 10 Day and Now the 10 4H William's %R Cycle. It is still in it's infancy. I have yet to plot it when this Volatility settles down to where it was ... like during the Summer ... to see if it remains accurate. I think it's obvious that I don't Play at Trading ... I Work at it ... and it is paying off. Keep in mind that my System is 100% mathematical ... so when I study the USD/CAD Pair ... I'm using ONLY what that Pair is giving me to base a Trade decision because I have found that any underlying Fundamental activity is already factored into the numbers ... Volume of Buying and Selling being the most obvious to monitor. It is still not 100% accurate ... no Indicator is. It's just the One in my Toolbox that gets used most frequently. Read ... Read ... Read. As for the entry and exits on the 4H ... when the Top denominator (because it is a division calculation) maxes out (gets close to 100) a Buy Signal is generated ... then You wait for One or Two 4H Bars to Print before Buying in ... set your Limit according to current Volatility ... lately the USD/CAD Pair has been Swinging at least 100 pips (I'm being conservative) so You aim for 50 pips with your Limit to assure You of a Profit. Conversely ... when the Top denominator diminishes (reaches towards "0") ... a Sell Signal is generated ... wait for One or Two 4H Bars to pass etc... what I do (because I say One or Two 4H Bars to pass) is I try to get in on the Tops (for a Sell) or the Bottoms (for a Buy) of either of the Two Bars "following" my Signal ... this is where my 15 Min. Chart comes in.

Median Line /Bline

Here is an approach that works on any time frame

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How are all our scalpers doing? I stopped scalping for a while just to give myself a mental break -- and I've been learning a lot in the Elliott Wave forum. But I'm back to scalping this week again. I don't know if I posted it here, but I put $250 into my micro account and last week and am up to $489 today. I am still having trouble risking too much by over-leveraging losing positions... working on that. But one thing I am betting better at is putting in stops and limiting my losses, which really aren't that many of my trades so far. My main strategy is to just watch the 5 and 1 min charts and look for spikes up or down, and I enter the opposite direction of the spike with a stop at the top/bottom of it. I can usually get 10-15 pips pretty easily that way. But sometimes I forget or don't put a stop in, then the trade goes too far against me, I average down and I'm back to "hold and hope" mentality. I am trying hard to not do that any more. That's what drained my account the last few times.

Have a good weekend, all.

Bryan

Bryan,

Way to go, your playing it conservitive. Good job. Just don't let the next phase kick in... greed. Play it the way it works. I know, I have had a rough week. There for some time I was happy with a 8 pip average. Well, if it isn't broke, you really shouldn't try to fix it. As a result I tried a therory to up my average to 20 pips but only ending up staying in way to long. It is very frustrating to see a setup, enter and watch it go to a positive 15 pips only to reverse and stop out at 23 pips. I can tell you, it doesn't take long for that to add up in the wrong direction. I gave it two weeks, but I think I am done with that therory. I have also figured out that there are some days (and parts of days) were it just clicks into place and I am in sync with the market and hit limit after limit. My record this month is 15 winners in a row. But other days (and parts of days) it seems I would have better luck by entering in the opposite of what I would think and hitting stop after stop. I have been trying to keep with the MM rules, but I haven't learned to adapt and recognize different markets.
SO, my current therory is that I am going to stop trading for the day when I hit my second stop. That way I don't get sucked into a market that doesn't work with my system, and at the most I will only have two losers per day. It seems once I start getting stopped out, the frustration builds and I stop waiting for the market to come to me and I start forceing trades. I can tell you, that doesn't work at all. Last week there was three days that I was up 100 pips, only to end the day down. Bummer.
I agree the "hold and hope" mentality doesn't work. It only makes the loss bigger.
John