Forex Super Signal System ~ forex trading tips for beginners
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Sabtu, 14 Mei 2016
Minggu, 01 Mei 2016
Divergence Trading Strategy With Renko Bars and The Awesome Oscillator ~ best forex trading courses uk
This Renko Divergence Trading Strategy is most simple!
As you can see this chart has only the Awesome Oscillator and Renko bars, a simple setup.
About the Awesome Oscillator.
This indicator is designed to reflect market momentum, that is , the speed of the price moving higher or lower. How it measures momentum is by subtracting the difference between the midpoints of the 34 simple moving average and the 5 moving average and plotting the difference as a histogram. The bars in the histogram are colored, red and green. The reason for the coloring is to illustrate increasing and decreasing momentum
.
There is a lot of information to be gleaned from the behavior of this oscillator.
It can confirm the current trend. As it crosses the zero line it indicates the trend changing direction.
It can point out a divergence between the oscillator histogram and the price.
It is also used by some traders in their Elliot Wave Analysis.
For purposes of our discussion we will limit to how to use this indicator to detect divergences.
And we are going to discuss Regular Divergences, bullish and bearish.
In order to detect divergences we have to observe the price bars and the oscillator. We have to pay particular attention to Higher Highs and Lower Lows.
Each time the price makes a higher high or a lower low, we have to see what happened with the Oscillator – did it make a higher high or a lower low.
Bearish Regular Divergence
Let us assume that price has made a higher high and that the oscillator has made a lower high. That is a tip that momentum has decreased and a warning that price may start to decline.
We draw a line on each connecting the tops.
Indeed the price may be starting to decline, we will wait for entry until the oscillator histogram crosses the zero line before entering a trade.
Our trade may be short lived for the reason that the trend on higher time frames may be bullish and this divergence is merely a retrace. We can re-enter, if such is the case, as the histogram crosses the zero line upwards.
Bullish Regular Divergence
This kind of divergence is similar to the bullish except we will be observing the lows of the oscillator and the price bars.
We will draw lines connecting the lows and watch for a discrepancy.
You can see in this picture the lines connecting the bottoms and the divergence between the price lows and the histogram lows.
Of interest is the change in momentum shown by the decreasing lengths of the bars in the histogram, We can see that the momentum in the downtrend is decreasing as price slows its bearish thrust.
Definitely use a stop loss with this type of trade,we never can be sure as to what the market is going to present as soon as a trade is entered, we have to protect our account.
Some traders endure many small losses as their stops are often hit and then they score well on a huge move.
That gives the basics of the Renko Awesome Oscillator Trading Strategy.
These setups occur on every instrument almost every day, we just have to have a few charts open and observe the higher highs and lower lows to earn an excellent income.
Enjoy!
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Kamis, 28 April 2016
Renko Awesome Oscillator Divergence Trading Strategy ~ forex trading account minimum
A trader usually wants to know when the end of a trend is about appear so that he can adjust his trading strategy to take advantage of the next trend.
Of course, divergence between price and oscillator is one way to be prepared.
One of the indicators that will point out divergence is the Awesome Oscillator which is found in most charting packages.
Using Renko bars together with an oscillator is a great way to eliminate the chop and see clearly when there is a divergence appearing.
I have attached three charts on which I have marked divergences, just to give an idea as to how simple it is to spot them.
Divergences are not to be traded blindly as the market does not always change trend with a divergence. Therefore we have to observe price action before making any entry.
Screen time and practice is required to hone the skills in trading and divergence is not a shortcut to any success, the hours have to be put in to learning how to use divergence, the same as any other tool.
For a detailed explanation as to the use of the Awesome Oscillator please see this page
Enjoy!
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Kamis, 14 April 2016
Awesome Oscillator Renko Divergence Trade from August 17 (updated) ~ forex trading institute in uk
Using Divergence as a trading strategy can be rewarding and using the awesome oscillator with Renko bars can be quite simple.
Here is an example from today’s trading on the EURUSD currency pair.
You can see that this entry provided a nice profit, above all, it was easy to see the divergence pattern. A person could be working with several charts at the same time and observing divergences.
In another post from yesterday I pointed out a divergence on the same pair. While the divergence did give trade, it was not the greatest profit. Some of them are good and some are not so good, as with any trading strategy.
Here is the chart I am referring to, probably the best entry was to wait for a couple bars to be above the 0 line on the oscillator to ensure that there was a good move.
Divergence trades are plentiful, and the tools that can be used are several.
Here are a few examples of divergence:
http://boutiquetradingstrategies.blogspot.ca/2014/11/what-is-best-for-determining-divergence.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/can-we-use-twiggs-money-flow-for.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/exelon-is-showing-bearish-divergence.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/divergent-opportunities-for-november-4.html
As I mentioned previously, divergence is not a fool proof method for a trading strategy, it is merely a tool and must be confirmed by price action
Good Trading!
Update
Here is a more recent trade in AUDUSD from January 18, 2016
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