Does anyone make money in Forex Trading?

[geiseb_hd]

there was a buy signal around the time the gbpusd was at 7910. Just check there. it always give nice buy signals and u can trust it. R u using metrader 4? Which platform chart service are you using?

[overgrowth]

Hi geiseb_hd,

Yes I'm using MT4 - I think I see what your trigger is now. Are you just looking for the stochs to move up through the 20 line for longs and down through the 80 line for shorts ?

[geiseb_hd]

Hey Over

By own admission, I am not a great chartist. However, I tried to prove that stochastics was in buy mode when the gbpusd hit 7905. There is obvious divergence also, as price was dancing down south while stochastics was singing a diferent tune. Let me know if this is great. I can post it next time when I see a signal or should I start a different thread. advice me.

Originally Posted by overgrowth

Hi Guys,

You've been talking about trading off stochs though I don't think anyone has mentioned exactly what your trigger is.

Stochs are very handy when used as a divergence indicator, however it sounds more as though you're looking for stochs crossovers ?

I've checked out GBP/USD for this morning with 14,3,3,E in the 15 min chart and can't see anything obvious to trade from.

[geiseb_hd]

Friends

I just closed my long trade in the cable at 1.7979. What an odd number? This was out of fear, which I always stupidly do? I never damn look at the chart and take action. Just look at the chart above. There is strong momemtum:

1. my emas, 10 & 21 WMA have not crossed.
2. price has penetrated the 62 WMA to the upside, a signal of strong momemtum.
3. news is out of the way at 8h30 ET .
4. there is no threat to the upward move, unless of course oil hits higher, which would be dollar negative.
5. or some bomb goes off or something happens

[overgrowth]

geiseb_hd,

Aha - you are trading the divergence - I've always found it tricky to spot these I think I need to zoom in on the chart more.

Has anyone created a snazzy MT4 indicator which highlights stoch divergences I wonder ?

It just so happened that the break through of the stoch 20 level was immediately after the divergence - could this be used as extra confirmation ?

[geiseb_hd]

Over,

A little homework for you in the attached chart. Can you spot the divergence in this chart? Tip - look what the 2 indicators are doing relative to price.

[Blaiserboy]

It might be best to locate divergences yourself , rather than rely on an adviser....

Keeps you in tune with what is happenin.......

[overgrowth]

Geiseb_hd

I've attached my completed homework.

Blaiserboy - fair point on manually checking for divergences, it's probably all down to practice spotting these.

I'd still be interested to see if anyone has managed to create a custom indicator to do this - it looks like quite a challenge for an MT4 programmer.