Other traders and analysts deploy the Disparity Index as a tool for defining [ Our first target was 1. This is considered to be a fully formed minute candle, body and shadows of which do not touch the built moving average, despite the fact that its closing price is above the previous high for the uptrend or below the previous low for the downtrend market. Only recommended for expert traders. The first work of your trading day will be to draw on each graph and for each pair:
Although there were a few instances of the price attempting to move above the period EMA between 1: We waited for the MACD histogram to cross the zero line and when it did, the trade was triggered at 1. We enter at 1. Our first target was 1. It was triggered approximately two and a half hours later. We exit half of the position and trail the remaining half by the period EMA minus 15 pips. The second half is eventually closed at 1.
The math is a bit more complicated on this one. The stop is at the EMA minus 20 pips or The first target is entry plus the amount risked, or It gets triggered five minutes later. The second half is eventually closed at Although the profit was not as attractive as the first trade, the chart shows a clean and smooth move that indicates that price action conformed well to our rules. We see the price cross below the period EMA, but the MACD histogram is still positive, so we wait for it to cross below the zero line 25 minutes later.
Our trade is then triggered at 0. As a result, we enter at 0. Our stop is the EMA plus 20 pips. At the time, the EMA was at 0. Our first target is the entry price minus the amount risked or 0. The target is hit two hours later and the stop on the second half is moved to breakeven. We then proceed to trail the second half of the position by the period EMA plus 15 pips. The second half is then closed at 0.
In the chart below, the price crosses below the period EMA and we wait for 10 minutes for the MACD histogram to move into negative territory, thereby triggering our entry order at 1. Based on the rules above, as soon as the trade is triggered, we put our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked, or 1.
It gets triggered shortly thereafter. The second half of the position is eventually closed at 1. However, it does not always work, and it is important to explore an example of where it fails, and to understand why this happens. In Figure 5, the price crosses below the period EMA and we wait for 20 minutes for the MACD histogram to move into negative territory, putting our entry order at 1.
We place our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked or 1. It is 6 45 am Paris time , just woke up, and my first work is to draw trend line. It will to risky to sell if a bar close under the black trend line because we are too close from the strongest red trend line, and the chances to have a rebound on it are high. So here we have a signal to sell. At this price I will rebuy the half of my position, and set a new stop for the remaining position at my entry price, 1, Active traders Poll - share your live experience or read what others have to say.
Forum What is Forex? Who's online There are currently 4 users online. Submitted by User on April 11, - Submitted by Olivier Traded pair: Now we are ready to trade and we just have to wait for the signal on our screen! But how much should I risk or expect on this trade?? Now you wonder how much will be your profit?
If you have any questions about it, please, feel free to ask me. Submitted by User on April 12, - Submitted by Olivier on April 13, - Submitted by Henry on April 15, - Also i would appreciate you throw more light as regards the stop loss and take profit issue.
Submitted by User on April 16, - Submitted by Olivier on April 16, - Thanks everybody for you interests in this technique! Henry, once you have your drawings from the morning, you just wait for the signal. Look at this graph: Then I go to my 15 min Chart and draw another trend line in black this time. So this trade went well, half of my position was sold at 1,, and I set a new stop at 1, Every time I make a new high, I move my stop just above. Free e-books Currency Index Forex bonus Video course.