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@ Banzai :
So you obviously trade "traditional, classical divergence" setups as well as "hidden divergence" setups, right ?
How to trade DIVERGENCE with RBCI
Just draw a line from peak to peak and from valley to valley. Red down arrow means SHORT. Green up arrow means LONG.
After you draw a line from valley to valley in the RBCI window, draw a line on the chart too.
If both lines are NOT in the same direction, that's a divergence. Since you draw a line from valley to valley, that's a LONG.
Vice versa for a SHORT. Draw a line from peak to peak in the RBCI window and draw a line on the chart too.
If both lines are NOT in the same direction, that's a divergence. Since you draw a line from peak to peak, that's a SHORT.Hi banzai, nice chart you posted. It looks simple, effective, and works on H4 timeframe, therefore is less time consuming. My question is regarding the exits. How would you suggest to handle them without complicating the system? Initial stoploss could be last high/low but I'm not sure about TPs. Waiting for opposite signals seems to be wiping out most of the profits, I think.
What do you guys think?
How to trade DIVERGENCE with RBCI
Just draw a line from peak to peak and from valley to valley. Red down arrow means SHORT. Green up arrow means LONG.
After you draw a line from valley to valley in the RBCI window, draw a line on the chart too.
If both lines are NOT in the same direction, that's a divergence. Since you draw a line from valley to valley, that's a LONG.
Vice versa for a SHORT. Draw a line from peak to peak in the RBCI window and draw a line on the chart too.
If both lines are NOT in the same direction, that's a divergence. Since you draw a line from peak to peak, that's a SHORT.
^^ Yes, I used the same default for all pairs, the same indicator found on post #1. I don't know how to customize for each pair. If you know how, please upload some for the 4H charts.
On post #59, taminghope customized some for GBPUSD 1H charts.
GBPUSD_60_FATL.mq4
GBPUSD_60_SATL.mq4
GBPUSD_60_RFTL.mq4
GBPUSD_60_RSTL.mq4
https://www.mql5.com/en/forum/173071
My 4/27/07 trades, 4H charts, using only RBCI2 and FTLM_KG_hist. Explainations are on the charts.
1. AUDUSD +$42.00
2. EURUSD +$29.00
3. GBPUSD +$475.00 (5 lots)
4. USDCAD +$17.89
5. USDCHF +$21.56
6. USDJPY +$23.48
---------------------------
Profit: $608.93
Thanks for the indicators. RBCI2 is very useful for me.
RBCI2 indicator has an alert now. Download it here:
https://www.mql5.com/en/forum/172923/page4
@ Banzai : So you obviously trade "traditional, classical divergence" setups as well as "hidden divergence" setups, right ?
It's like a 2nd confirnmation. In this trade, RBCI2 is in the overbought area so it's time to sell. Then I see a divergence. Now I have the confidence to sell. Not to mention the histogram turns red too. That's a reversal signal.
Hi banzai, nice chart you posted. It looks simple, effective, and works on H4 timeframe, therefore is less time consuming. My question is regarding the exits. How would you suggest to handle them without complicating the system? Initial stoploss could be last high/low but I'm not sure about TPs. Waiting for opposite signals seems to be wiping out most of the profits, I think. What do you guys think?
This histogram is lagging but we can use it to exit a trade. Exit when it turns color. Another way is to draw a Fibonacci line and exit @ Fibo 50% or 61.8%.
Thank you banzai.
I've spent one day to manually back test Jan-Mar for EURJPY H4 using RBCI2 entry and fibo exit.
I've found out that this indicator is a counter trend or retracement trading indicator. This is good for ranging market but poor for trending market.
Good news is I could enter market in minimal loss with huge potential profit. I found that risk/reward ratio was 1:3 for EURJPY H4. This means if I can stand for two to three losses (average 70pips each) before getting good trade(s) (average 200pips each,) I'd be happy. When there are two or three good trades in a row, this is real good profit.
Anyway, my personalities cannot stand for more bad trades than good trades although I know overall is profitable.
BTW, I've uploaded my minor modification for your RBCI2a in your upload thread:
https://www.mql5.com/en/forum/172923