Daily Divergent Candles Method - MT4/MT5 Resources
Hi guys,
Today I'm going to share with you a quiet and simple method that you can use to trade every day of the week with minimal time and effort.
Call up the D1 chart for the following currency pairs every day at 0000 GMT:
U/J, G/U, E/U, U/C, E/G
You are looking for a candle that is different from the most recent closing price. My definition of a divergent candle:
Bullish Divergence Candle: Forms a lower low than the previous 5 candles, but closes in the green.
Bearish Divergence Candle: Forms a higher high than the previous 5 candles, but closes in the red.
On the bullish divergence candle, enter two long positions at the opening price of 0000 GMT with a stop loss at the candle's low - 5 pips buffer. TP1 is the same number of pips as your stop loss and let the other long run until you get an opposite daily candle (i.e. a short signal). If the next signal you receive for this currency pair is long, move your stop up to the new position of your stop.
On the bearish divergence candle, make two sells at the 0000 GMT open with stop loss at the candle high + 5 pip buffer. TP1 is the same number of pips as your stop loss and let the other short run until you get the opposite daily candle (i.e. a long signal). If the next signal you receive for this currency pair is short, move your stop down to the stop of the new position.
The entire process should take less than thirty minutes per day, and among these five pairs, you should receive at least one signal per week.
If you use a good MM, the system will work very well and allow you to trade every signal without worrying about missing any. If you are not awake by 0000 GMT, you can usually retrace somewhere on the previous candle and take a better position (with less risk).
NOTE: You do not have to exit a position when you receive an opposing signal, once the trade is free it will be very interesting to see what happens when you let the trade run. I've posted a sample chart below and you can see that if you let it run, the last buy signal will net you about 500 pips, but if you exit the position on the opposite signal, you'll get a BE of both longs and shorts.
Good luck. I will be posting live trades for this method from the first 0000 GMT next week.
Today I'm going to share with you a quiet and simple method that you can use to trade every day of the week with minimal time and effort.
Call up the D1 chart for the following currency pairs every day at 0000 GMT:
U/J, G/U, E/U, U/C, E/G
You are looking for a candle that is different from the most recent closing price. My definition of a divergent candle:
Bullish Divergence Candle: Forms a lower low than the previous 5 candles, but closes in the green.
Bearish Divergence Candle: Forms a higher high than the previous 5 candles, but closes in the red.
On the bullish divergence candle, enter two long positions at the opening price of 0000 GMT with a stop loss at the candle's low - 5 pips buffer. TP1 is the same number of pips as your stop loss and let the other long run until you get an opposite daily candle (i.e. a short signal). If the next signal you receive for this currency pair is long, move your stop up to the new position of your stop.
On the bearish divergence candle, make two sells at the 0000 GMT open with stop loss at the candle high + 5 pip buffer. TP1 is the same number of pips as your stop loss and let the other short run until you get the opposite daily candle (i.e. a long signal). If the next signal you receive for this currency pair is short, move your stop down to the stop of the new position.
The entire process should take less than thirty minutes per day, and among these five pairs, you should receive at least one signal per week.
If you use a good MM, the system will work very well and allow you to trade every signal without worrying about missing any. If you are not awake by 0000 GMT, you can usually retrace somewhere on the previous candle and take a better position (with less risk).
NOTE: You do not have to exit a position when you receive an opposing signal, once the trade is free it will be very interesting to see what happens when you let the trade run. I've posted a sample chart below and you can see that if you let it run, the last buy signal will net you about 500 pips, but if you exit the position on the opposite signal, you'll get a BE of both longs and shorts.
Good luck. I will be posting live trades for this method from the first 0000 GMT next week.
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