Quote from X-11:
This thread started talking about hidden divergences and now is about regular divergences.
JSSPMK, how do you relate what looks like 1-min, 2-min, 3-min, ect charts to each other? (From the Dax thread). Do you take whichever one is showing a good divergence at the time? And can I ask what moving average is in your price chart?
What I do is always
'trade what I see', no bias in daytrading, my trigger is always 1 minute chart, I hope that's self-explanatory. I mostly trade divergencies from 1 to 10 minute time frames. I don't agree with traders that state time based charts are a thing of the past, still doable.
I guess your Q is about what do I do if there is a bearish divergence on 10 and a bullish one on 1 minute charts?
The answer is simple, I trade the most immediate case, that being 1 minute one, at some point when it starts running its course and 1 minute chart starts showing exhaustion then I will consider reversing and going Short off 10 minute chart's bearish divergence.
I must stress that I only turned profitable when I started scaling out of a position. Take it as you will, some are against scaling out, all I can say that as long as it works it's fine to scale out.
I play
mini trends, so there is a clear necessity to scale out as I have no idea at which point in time that mini trend will end and change or perhaps buy programs might kick in and something that started out as a small bounce leads to a much bigger gain due to a reversal.
So my average day goes something like this:
Long - Scaled out 2/3 +8 - Stopped 1/3 b/e;
Short - -3;
Short - -3.5;
Short - Scaled out 2/3 +10.5 - Stopped 1/3 - 0.5;
Long - Scaled out 2/3 +8 - Trailed 1/3 +30
etc.
Today's results were:
Winning trades: 6
Losing trades: 9
B/e trades: 1
+100.5 (fDAX) Gross.
