Forex Market Prediction Cycles with Divergence - Forex Strategy Resources

Name : Currency Markets Prediction Rounds with Divergence
Indicators : Stochastic Oscillator (5, 3, 3) and Cycle Lines
Time Frame : 15min Charts and above


Predicting Forex Markets using Astrology

Last year, upon my stop by at Ahmedabad, India, We met an Astrologer whom shared some insights on their views on the areas that are financial. During our conversation he explained the way the movement of planets in relative towards the planet have effect on how life runs on a basis that is daily.

I becamen't in a position to grasp everything in information We did grab on their explanation concerning Market rounds that he went on explaining but. He mentioned that the market works in cycles. The factor of price need not follow this concept but time does follow it. Clearly, being within the Forex areas for way too long, I decided to together place this idea into technical terms and attempted to apply it - interestingly the outcomes come out astonishing.
Just how to utilize the Strategy

The point that is first do is pull up any forex chart and try to find a divergence between price and Stochastic Oscillator. Once the divergence is visible, we plot the Cycle Lines from point out point. This may draw a verticle line in future based on time which will display as soon as we should leave our positions. Like this you will usually manage to caputre the power that is whole of period.

Confused yet? Don't worry - lets placed all this into nice pictures that are detailed examples.
Step 1 : determine the Divergence (The Entry)

In the event that marketplace is in a downtrend, link the peaks that are top.
In the event that market is in a uptrend, link the underside valleys.

Divergence is a great indication for a reversal of the trend that is immediate.

Uptrend Example :
In this uptrend instance we can clearly begin to see the divergence between cost and our Oscillator that is stochastic indicator the bottom. As this development is shown, we can enter long (purchase).

Downtrend Example :

In this downtrend instance we are able to plainly start to see the divergence between cost and our Oscillator that is stochastic indicator the bottom. As this formation is shown, we are able to enter short (sell).

Step two : Find the Mid-Point

Look for the Peak that is middle or (we'll phone it mid-point from right here on out) between your two points where we utilized to find our divergence as shown in the example image below.

Note : Ok now comes the component that is tricky. Be sure you spend attention while reading this and/or read this times that are a few grasp the idea totally.

As soon as you get the peak that is mid valley, find out if the distance between point 1 to mid-point is larger or from mid-point to point 2. (refer towards the image above to understand point 1 and 2). When you figure our which one is larger, we shall now get willing to plot the pattern Lines.
Step three : Plotting the Cycle Lines (The Exit)

Always Plot Cycle Lines on the more expensive distance.

Rules : If the length between Point 1 to Mid-point is larger, we would plot my period from Point 1 all the real method to at least one candle ahead of the midpoint.

All the best way to one candle after point 2 if the length between midpoint and point 2 is bigger, i might plot my Cycle from midpoint.

As soon as your plot the period, you will begin to see the area that is next exit based on time. Refer to example below

In the example above, since the distance between point 1 to midpoint ended up being bigger, I plotted my period Lines from Point 1 all the true way to at least one candle before the midpoint. Once used to do that, I can clearly see what time we should leave my short (sell) trade that I initiated after point 2.
Example 1 : Sell Trade

In the Sell Trade instance, we'd a divergence that is good gave us a heads up that the marketplace is likely to be quick. We enter our trade for a Sell. But for how long? We must plot our rounds to answer that concern. We assess the distance from the peaks towards the midpoint and now we note that the peak that is first the midpoint has a bigger distance. We plot our period Lines from 1st top all of the way to 1 candle prior to the point that is mid. We have now a exit that is clear. We simply take our trade up until the period that is next. At the close regarding the candle in the period, we exit. This trade lead in +49 pips.
Example 2 : Buy Trade

Within the purchase Trade example, we'd a divergence that is good gave us a heads up that the marketplace goes to be very long. We enter our trade for a Buy. But also for how long? We truly need to plot our rounds to respond to that concern. We assess the distance through the valleys towards the midpoint and we come across that the valley that is first the midpoint has a bigger distance. We plot our Cycle Lines through the very first valley all of the way to 1 candle before the point that is mid. Now we've a exit that is obvious. We just take our trade up to the cycle that is next. At the close of this candle on the cycle, we exit. This trade led to +42 pips.