monpere 

I was using the double bottom just as an example that most people are familiar with. I do also agree that most people fail because they are searching for an indicator to put on their chart, and instantly get 95% winning signals without understanding how the indicator moves, and what each of it's different patterns convey. I spent 3 years studying the MACD until I knew everything about it inside and out, I realized that I actually only needed to trade the histogram patterns displayed as a line, and did not even show the other MACD elements on my charts. I also realized that the MACD would kill me with horrible counter trend divergence signals in a strong impulse move. I started looking at the RSI as a filter, and realized that the RSI would filter out the majority of those bad divergences and keep most of the good divergences, so I dropped the MACD, put my required time in getting intimate with the RSI, and now that is my indicator of choice, but I only look at the RSI average line, the true RSI line conveys no useful information to me, so I don't display it on my charts. I don't know about other traders, but I trade pictures of my indicators, I have 3 or 4 pictures that, when I see my indicator combination forming one of these pictures, I don't hesitate to pull the trigger. I only need to look at my charts for 5 seconds before a bar closes to know if I need to grab the mouse or not. I had the same process with the stochastics. I can tell you what all your Stochastics lines will look like by changing each one of the Stoch parameters separately, because they each affect the behavior of the stoch in a very specific way. I think we have an instant gratification society and we expect the same of our indicators, but that does not cut it in the trading world. You have to get to know your indicators better then you know your spouse

Monpere, interested to see a screen shot.

bluemele 

Monpere, interested to see a screen shot.

Here's today's TF, this snapshot is before the market opens. All together I got 24 signals for the day, which is typical. As this is mainly a divergence method, you get more signals when the market is ranging then when the market starts trending. I start trading at 8:00am EST and many times I'm done trading before the market opens, I am almost always done by 11am. On a 3 range chart, enter with stop/limit at the close of a bar, target is 6 ticks, stop behind the entry bar (4 ticks), stop gets moved to 3 ticks at 1 tick profit, and to break even+1 at 5 ticks profit. A 6 tick target/3 tick stop gives me a scalping system with a fixed 2:1 reward/risk ratio. I have not included my indicators on the chart to protect the innocent , but they are the good old RSI, and Stochastics.

Hi Monpere,

I am new here and I am interested in your entry technique. If you wouldn't mind explaining, it would be helpful.

If you have a three range bar, and you enter at the close of the bar, won't there be a lot of times that you will not get filled? I have noticed with range bars that once the bar closes, if you then place your entry at the close of that bar, often times price just keeps going. I am unclear as to how you do this. Any clarification would be great. Thanks.

Also, one more thing if you don't mind Monpere.

You mentioned that your method works well when the market is ranging, but not when it is trending. I have seen plenty of days when the market is trending. What do you do during these days?

Thanks again.

JS12 

Hi Monpere, I am new here and I am interested in your entry technique. If you wouldn't mind explaining, it would be helpful. If you have a three range bar, and you enter at the close of the bar, won't there be a lot of times that you will not get filled? I have noticed with range bars that once the bar closes, if you then place your entry at the close of that bar, often times price just keeps going. I am unclear as to how you do this. Any clarification would be great. Thanks.

With a range bar when you get good enough to see which tick it will end on then you can have a limit waiting for it. That is the benefit of any non-time based, or value type bar.

Ticks, Minutes, etc.. You don't know where it will end up at the end of that minute/tick.

With Range, Renko etc.. you know exactly where it would need to be to close up or down. Hope that helps.

Thanks a lot bluemele. I understand exactly what you mean now. I am used to tick charts, have to get used to the range bars.

JS12 

Also, one more thing if you don't mind Monpere. You mentioned that your method works well when the market is ranging, but not when it is trending. I have seen plenty of days when the market is trending. What do you do during these days? Thanks again.

Since I am working with such a small time frame, there are generally enough entries in normal trending markets, and ranging markets, but not in very strong impulsing moves. There is an indicator on this board or on NinjaTrader board that will tell you the prices a range bar will end, up and down. I just put my stop limit order at one of those prices depending if I am going long or short.

Monpere,

Thanks for the help. I have tried divergence trading in the past, but it has never worked for me with any indicator. If you keep on taking trades against the trend, and the trend keeps going, don't you get run over?

I have heard that most of the pro traders out there trade with the trend. Going against the trend is dangerous I always thought.

Would you mind posting some more charts? I primarily trade the 6E, so charts of that would be most helpful.

Thanks again.

JS12 

Monpere, Thanks for the help. I have tried divergence trading in the past, but it has never worked for me with any indicator. If you keep on taking trades against the trend, and the trend keeps going, don't you get run over? I have heard that most of the pro traders out there trade with the trend. Going against the trend is dangerous I always thought. Would you mind posting some more charts? I primarily trade the 6E, so charts of that would be most helpful. Thanks again.

I guess that discussion belongs more in another thread, but in that small of a time frame you get a subset of normal divergence signals that are with the trend. Some divergence traders also trade 'Hidden Divergence or Reverse Divergence' which also go with the trend (see thread

Post your favorite Divergence ind. here I am re-coding Dadof3and3's, beautiful piece of work, D3Spotter to use the indicator's (ind.) data-series as the primary divergence (div.) comparison and price as the secondary div. comparison. First I'm tackling the MACD Histogram, because …

) but I do not trade those . You can find some info on that if you search for it. I also have one with the trend setup that I trade that is not divergence.

Monpere

https://nexusfi.com/attachments/27879d1294275561

Are these entries based on einisniper? or can you pl explain entry condition?