358 # Histogram Divergence scalping system with Envelope
Envelope Divergence Forex Strategy
Submit by Joker 30/06/2013
Time Frame 15 min or higher
This forex strategy even though it was designed for scalping, it works great high time frame.
Histogram Divergence (Trend Indicator)
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
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
In the pictures belowHistogram Divergence scalping system with Envelope in action.
Share your opinion, can help everyone to understand the forex strategy.