Super Divergence Forex Trading Strategy

The Super Divergence Forex trading strategy is designed to aid currency traders effectively pinpoint higher and lower divergence momentum.

For that reason, trend continuation and trend reversal signals can be spotted easily on the trading chart with this strategy.

Being able to deploy this strategy effectively can be one of the best ways towards attaining the best trading results.

Moreover, the Super Divergence Forex trading strategy reveals how the market will likely behave in the short-term future.

It offers traders with the opportunity to make the most suitable buy/sell trading decisions on any currency pair and timeframe.

Chart Setup

MetaTrader4 Indicators: all-in-one-divergence.ex4 (Default Setting), keltner-channel-with-signals.ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

1 If price forms a lower low as seen between Points A & B, while displaying a corresponding higher low between Points C & D on the all-in-one-divergence-indicator, a bullish divergence is said  to be looming, therefore a signal to go long on the designated forex pair.

  1. If the keltner-channel-with-signals Metatrader 4 forex indicator displays a blue star that is slightly below the candlestick as shown on Fig. 1.0, price is said to be pushed to the upside, hence a signal to go bullish on the selected currency pair.

Stop Loss for Buy Entry: Place stop loss 2-5 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If the dim gray line of the all-in-one-divergence indicator break below 50.00 center level during a bullish signal, it is indicative of a possible bearish reversal, therefore an exit or take profit stance is advised.
  2. If the keltner-channel-with-signals indicator displays a saddle brown star that is positioned above the candlesticks as shown on Fig. 1.0, an exit or take profit is recommended.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

1 If price forms a higher high as exemplified between Points A & B, while displaying a corresponding lower high between Points C & D on the all-in-one-divergence-indicator, a bearish divergence is said to be imminent, therefore a signal to go short on the currency pair of focus.

  1. If the keltner-channel-with-signals Metatrader 4 forex indicator puts up a saddle brown star that is positioned somewhat above the price bars (see Fig. 1.1), price is said to be driven to the downside, hence a signal to go bearish on the selected forex pair.

Stop Loss for Sell Entry: Place stop loss 2-5 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the dim gray line of the all-in-one-divergence indicator surge above the 50.00 center level while a bearish trend is ongoing (refer to Fig. 1.1), it is indicative of a likely bullish reversal, therefore an exit or take profit stance will suffice.
  2. If the keltner-channel-with-signals indicator displays a blue star that is placed below the candlesticks, it is a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The all-in-one-divergence.ex4 MT4 indicator is an RSI-based oscillator that shows a condition under which a currency pair’s price and momentum are not in sync.

The keltner-channel-with-signals.ex4 indicator on the other hand displays volatility-based envelopes that are aligned above and below an exponential moving average.

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