ultramann


I focus predominantly on divergence trading because it has certain advantages that I value.
Firstly, we must remember that most indicators are "lagging", ie, by the time they form a buy/sell signal, it is often too late to jump on the bandwagon...

But when a divergence is spotted, it is a "leading" indicator... it indicates that the uptrend/downtrend will be ending "soon"..
The big downside (and arguably the only downside) to divergence trading is that it can't accurately pinpoint exactly when/where is the best entry point... It only tells you that the current trend is ending "soon"... Hence, if you enter too early, your stop loss (SL) might get hit whereas if you wait for the perfect entry it may never come and you may miss the opportunity... This is the main problem...

To counter this "flaw", what I usually do is I scale in my entries systematically with small lots until the price reaches the optimal entry point.
This strategy can be applied to all timeframes but of course the bigger timeframes are more reliable.

Indicators/tools that I usually use: Moving averages (simple and exponential), daily support and resistance levels, fibo retracement levels (crucial), RSI, MACD, PPO and Volumes.

I strongly recommend babypips.com school of pipsology for beginners. It will take a lot of time to cover everything but you should read at least until the "high school" level before attempting any trading on a real account (very important). Lastly, you must be prepared to accept a few losses, especially during the early stages... refusing to accept small losses will at some point lead to huge losses and a potential margin call (account wipeout).

Anyway, feel free to ask any questions you may have. I will try my best to answer it accurately...

This post has been edited by Alan Andrews: Nov 13 2017, 11:02 AM

Yes, I do scalp sometimes (if there is a nice setup)... I usually use the 5-minute chart for scalping.
I apply the same principles mentioned above, ie, wait for a divergence/converge pattern and scale in my entries.
The target is usually just a handful of pips.
However trading the M5 is risky because you can suffer from "tunnel vision"...
Must always check the bigger timeframe charts (at least M15 or better still M30/H1)
Try not to "oppose" the bigger trend especially if significant fundamental factors are in play at that time.
When you trade divergences, it is a little difficult to classify trades as intraday trades.
If you are trading using the H1 and H4 chart, it may stretch for a few days...