Ok, I tried to make some example screenshot.
Now, how do you work with it.. You have to open chart windows in pairs like it's shown on the screenshot and to make sure they're all same tf and same size.
You have to check only the right side of the chart to see if there's any divergence. That happens when one of the pair is clearly higher than another. Note, that the charts do redraw with time (particularly when price is making new lows or highs), so then you have to look at higher tf to see a better picture.
When you see a divergence, you check 15min, 30min, 1hr and so on. You probably don't want to go further than 4hr tf though. If they all agree or atleast don't strongly disagree with what you saw on smaller tf, it is a signal to make an entry.
The bigger the divergence, the stronger the signal. If two pairs actually go in opposite direction instead of just one being somewhat behind, it's an absolutely best signal. You also want to look for SR levels. If they happen to reinforce your entry, good. If they're in the way, you might wait for price to get through them. You always have to use discretion when making an entry.
You have to measure the quantity to buy/sell for each pair. This part is absolutely essential, since one pip on EURJPY is not the same as one pip on USDJPY. And they're constantly changing. You always need to make each pip as close as you can to each other. Find out the average ratio pairs have been traded on some reasonable tf and use it.
Now you will almost always face drawdown before the price settles somewhere and turns to "repair" the difference. I'm used to averaging to squeeze the maximum from big divergences, but you don't have to do so. Note, that this method requires you to use bigger margin, since you always make two entries and you always have to leave enough place for drawdowns, so you won't be forced out at the worst place.
Fell free to give it a try if you want. I will also answer questions if you have any.
Now, how do you work with it.. You have to open chart windows in pairs like it's shown on the screenshot and to make sure they're all same tf and same size.
You have to check only the right side of the chart to see if there's any divergence. That happens when one of the pair is clearly higher than another. Note, that the charts do redraw with time (particularly when price is making new lows or highs), so then you have to look at higher tf to see a better picture.
When you see a divergence, you check 15min, 30min, 1hr and so on. You probably don't want to go further than 4hr tf though. If they all agree or atleast don't strongly disagree with what you saw on smaller tf, it is a signal to make an entry.
The bigger the divergence, the stronger the signal. If two pairs actually go in opposite direction instead of just one being somewhat behind, it's an absolutely best signal. You also want to look for SR levels. If they happen to reinforce your entry, good. If they're in the way, you might wait for price to get through them. You always have to use discretion when making an entry.
You have to measure the quantity to buy/sell for each pair. This part is absolutely essential, since one pip on EURJPY is not the same as one pip on USDJPY. And they're constantly changing. You always need to make each pip as close as you can to each other. Find out the average ratio pairs have been traded on some reasonable tf and use it.
Now you will almost always face drawdown before the price settles somewhere and turns to "repair" the difference. I'm used to averaging to squeeze the maximum from big divergences, but you don't have to do so. Note, that this method requires you to use bigger margin, since you always make two entries and you always have to leave enough place for drawdowns, so you won't be forced out at the worst place.
Fell free to give it a try if you want. I will also answer questions if you have any.