Spotted right now regular divergence on M5 Nasdaq- lets see whats going on next minutes, if he comes down
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Hi mate, I don’t really want to change your way of trading or hinder your progress in any way. But I saw this post and wanted to give you some advice. I have found 5 min divergence to be unreliable therefore to save you time and money I advise you not to trade it at all. I still look at it now and again but it’s a trap lol. When it works, it looks great but it fails most times or doesnt have the risk reward. Be careful, I reckon there must be something about patterns that the brain gets married to.
You should try looking for divergence in multiple timeframes. I was in EU short today. Have a look at divergence there on 1 hr, 15 min and then 5. There is more confluence and using higher timeframes works better. It also makes sense to me so I can trade this consistently. It may work for you. Give it a go.
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Theres an educator online that uses a divergence strategy that looks similair to yours. Waiting for price to hit a key level on higher timeframes, look for divergence, then do the same through each lower timeframe for confluence, enter with no stop loss, if there is a stop-hunt then open another position to stack the trades. The guy flips accounts regularly. The key to his risk management is small accounts, small lot sizes, withdraw profits to reduce account back to starting balance, rinse/repeat.
He does this in a seperate account that he uses only for divergence. Im gonna give it a backtest.
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Thanks for your advice, I experienced that with lower timeframe, especially if the pattern consists only of two points like that what I mentioned here, we know where Nasdaq was heading yesterday, so this divergence was a little bit weak…I don’t take divergence alone for a trade
Yeah is that momo? I watched a YouTube video of his a while back where he explained that you split your account and keep adding in positions while price diverges. It sounds interesting. So you’ll always profit until price doesnt come back up lol but hopefully by then you’ve doubled your account. I dont remember how he does it though, maybe adding in every 20 pips? I wasnt keen on no stop loss, also you need large leverage and therefore a broker out of EU and no -ve balance protection.
Lol yeah Momo, him and Nick Shawn. Are you trading purely just divergence?
Yeah from what ivs seen it looks like he adds to his position when the trade initialy goes against him, which he expects to happen anyway. I cant find anything of him going into much detail though, but I think he explains it on his coarse.
Basically I use anything I know to take the trade. But if I see divergence then I’ll check the higher timeframes to see if theres confluence.That’s why im always reading over the weekend or watching YouTube videos everytime someone mentions someone. I’ll check him out again this weekend see if theres any material that can clarify how he trades. Normally I can work out how they trade really easily. Like Nick Shawn’s setup is so self explanatory you can just trade it yourself. No need to buy a course.
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