Well ive been using many pullback strategies over the past years and i've been doing quite well, I'm currently on and FTMO evaluation and hopefully will pass it soon.
The thing is that over the years, as many traders do, i've been trying to better my timing of the market, and as well increase my RR ration.
I've be revising the concept of divergence using macd and emas, nothing new and fantastic but the catch here is the entry model that i've been testing.
We al know that the area between the emas are usually refered as "value" areas so, in these areas is where we should look for trades.
Ill share some pics:
You can see in this picture we are in the "value" zone of the emas and with divergence between the two highs, for a valid divergence please notice that we should have a bottom on the macd in between the divergence like shown in the pic below:
Now for the entry point i wait for a candle close on the direction of the trade, then ill wait for the break of it, and ill put fib from the low/top of the wick till the top/bottom of the candle that im waiting the break.
Notice that at the momento when the bearish candle closed macd was still making equal tops on the indicator, it was already a divergence, not a strong one but it was.
The entry is on the 78.6/88.6 with the stop on the 1.618, i'll show below:
the ideia is to enter on the fib level written above, but the ultimate entry is actually where the stops would be, right above the candle wick predicting a manipulation, as we are protected at the 161.8 level
If any one have a similar aproach please lets share some knowledge,
EMAS: 50 AND 200
MACD: standard configuration
The thing is that over the years, as many traders do, i've been trying to better my timing of the market, and as well increase my RR ration.
I've be revising the concept of divergence using macd and emas, nothing new and fantastic but the catch here is the entry model that i've been testing.
We al know that the area between the emas are usually refered as "value" areas so, in these areas is where we should look for trades.
Ill share some pics:
You can see in this picture we are in the "value" zone of the emas and with divergence between the two highs, for a valid divergence please notice that we should have a bottom on the macd in between the divergence like shown in the pic below:
Now for the entry point i wait for a candle close on the direction of the trade, then ill wait for the break of it, and ill put fib from the low/top of the wick till the top/bottom of the candle that im waiting the break.
Notice that at the momento when the bearish candle closed macd was still making equal tops on the indicator, it was already a divergence, not a strong one but it was.
The entry is on the 78.6/88.6 with the stop on the 1.618, i'll show below:
the ideia is to enter on the fib level written above, but the ultimate entry is actually where the stops would be, right above the candle wick predicting a manipulation, as we are protected at the 161.8 level
If any one have a similar aproach please lets share some knowledge,
EMAS: 50 AND 200
MACD: standard configuration