358 # Histogram Divergence scalping system with Envelope

Envelope Divergence Forex Strategy

 

Submit by Joker 30/06/2013

 

Time Frame 15 min or higher

Currency pairs:any.

 

This forex strategy even though it was designed for scalping, it works great high time frame.

Indicators:

Histogram Divergence (Trend Indicator)

Five Envelopes;

Exponential moving average 89 (89 EMA indicator).

 

Note: in this forex strategy ,I use Histogram divergence Indicator as Trend indicator because i think that this indicator is also an good trend indicator.

Rules:Histogram Divergence scalping with Envelope

 

Sell

Histogram Divergence indicator<0;

The price has to close below the black EMA line. The candle that is closing below is called the set up candle.

The candle must close above the dotted red line

If the candle that is closing below the white line also is closing below the dotted red line the trading signal is not valid.

You place a pending short position 1 pip below the low of the set up candle.

You place the stop loss 5pips + above the 20 Exponential moving average.

Take Profit for Short position options:

1) TP The Envelope dotted Red 2 )TP The envelope dotted black, 3) Profit Target predetermined depends by

The best chance of winning, you have when there is a divergence but this is a discretionary choice.

 

Buy Conditions is reversed.

This Forex Strategy is also good for trading with Binary Options.

In the pictures belowHistogram Divergence scalping system with Envelope in action.

Histogram Divergence scalping system with Envelope
Histogram Divergence scalping system with Envelope
Histogram divergence with envelope.rar
compressed file archive 6.9 KB
Histogram Divergence scalping system with Envelope
Histogram Divergence scalping system with Envelope
Histogram Divergence scalping system with Envelope
Histogram Divergence scalping system with Envelope

 

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