Wildhog Common Divergence Foreign currency trading technique

How do we intercept reversals from the start? Or is it even possible?

Catching lows or peaks and trade reversals is a dangerous game, especially in a very trendy market. It would be like stepping in front of a truck and hoping that it bounces off you. There is a possibility that the truck will knock you down.

However, there are traders who are very familiar with trade reversals and who can take peaks or troughs and overcome them as the market reverses. These traders are often able to benefit from huge profits that would make them very profitable in the end. It's not that they're super traders, just that they know a strategy or two to reverse the market.

Regular deviations – a sign of a likely reversal

There are many ways to do reversals. Regular deviations are one of the better ways to trade reversals. It's not perfect, but with the right filters, it works.

Deviations are fundamentally discrepancies between price movements and an oscillating indicator. The price movement moves in such a way that it moves up and down on the chart and forms swing highs and swing lows. Typically, an oscillating indicator tracks the ups and downs of the swing with its own peaks and valleys on another window. However, there are cases where the height or depth of a peak or valley of an oscillator differs from that of the highs and lows on the price chart. We call that divergence.

Since discrepancies are discrepancies between price and an oscillating indicator, which is somehow a mathematically calculated basis for whether the price is relatively cheap or expensive, it is somehow an indicator of a likely market reversal. For example, the price on the price chart has gone up, but on the oscillating indicator that the peak is considered cheap in one way or another compared to the previous peak, either will give way. If the price followed the oscillating indicator, it would turn around.

There are two types of discrepancies, hidden and regular discrepancies. In my experience, hidden divergences are usually minor reversals where the direction of the divergence is still in line with the overall picture trend. On the other hand, if there are regular deviations, they tend to appear at the end of the trend, in which price movements may already lose steam and reverse. This is not a fixed rule, just my personal observation. Although hidden divergences are highly likely, regular divergences tend to reverse more.

Below is a cheat sheet of the types of deviations.

Trading strategy concept

This strategy aims to capture large reversals from the start, using a custom indicator that can detect discrepancies, the Wildhog NRP Divergence. Although this indicator can detect both regular and hidden deviations, we will only use regular deviations.

To increase the likelihood of a successful regular divergence setup, we'll combine this strategy with another custom indicator that tends to determine the short-term trend by printing bars over the candle holders, the Gann HiLo activator bar. With this template, we have green bars that represent a bullish short-term trend and red bars that represent a bearish short-term trend.

The Wildhog NRP divergence indicator often detects regular divergences before the actual reversal. However, the reversal has not yet been confirmed. This is where the Gann HiLo activator bars come into play. If the reversal occurs immediately after a regular divergence is recognized and the reversal begins with a strong pulse, the Gann HiLo activation bars change color immediately.

To act this strategy, we perform regular divergence setups that the Wildhog NRP divergence indicator detects when the candle would cause the Gann HiLo activator bars to change color immediately after divergence.

Indicators:

  • Wildhog NRP divergence
  • Gann HiLo activator bars

Time frame: 15-minute and 1-hour charts

Currency pair: any

Trading session: any

Buy (Long) Trade Setup

entry

  • Wildhog NRP divergence should recognize a regular bullish divergence, indicated by a sky-blue solid line below the price movement and the oscillating indicator, as well as a green up arrow.
  • The bar immediately after the divergence should cause the Gann HiLo activation bars to change from red to green immediately.
  • If the above rules are met, place a buy order at the end of the candle.

Stop loss

  • Set the stop loss on the fractal below the entry candle.

output

  • Close the trade if the Wildhog NRP divergence indicator detects opposite divergence. or
  • Close the deal when the Gann HiLo activation bars turn red

Buy commercial example 1

Buy commercial example 2

Sell ​​(Short) Trade Setup

entry

  • Wildhog NRP divergence should recognize a regular bearish divergence, indicated by a pink solid line above the price movement and the oscillating indicator, as well as a downward-pointing magenta arrow.
  • The bar immediately after the divergence should cause the Gann HiLo activation bars to change from green to red immediately.
  • If the above rules are met, enter a sell order at the end of the candle.

Stop loss

  • Set the stop loss on the fractal above the entry candle.

output

  • Close the trade if the Wildhog NRP divergence indicator detects opposite divergence. or
  • Close the deal when the Gann HiLo activation bars turn green

Sell ​​sample 1

Sell ​​sample 2

Conclusion

Catching peaks and bottoms are usually low-probability trading configurations. However, this strategy increases the likelihood of a successful reversal buildup due to the combination of a regular divergence buildup and confirmation of the Gann HiLo activation bars.

Deviations are a proven trading strategy. Many traders have become profitable throughout, with divergences at the heart of their trading strategy. Some traders even claim that they typically have one or two successful deals within three attempts of consecutive divergence setups. That may not seem too appealing, but given the fact that variances have a very high reward-risk ratio, it's still incredibly profitable.

The Wildhog NRP divergence indicator greatly simplifies work because it requires the subjectivity of detecting a deviation from the trader and instead shows what it detects.

It would be best to combine this strategy with a sense of price movements, as successful reverse trade setups typically take place at the end of the trend. If the trend overstretches and starts to roll, it can lead to a likely reversal.

Act wisely !!!


Installation guide for Forex Trading Systems

The Wildhog Regular Divergence Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.

The essence of this forex system is to transform the accumulated historical data and trading signals.

The Wildhog Regular Divergence Forex Trading Strategy offers the opportunity to recognize various peculiarities and patterns in price dynamics that are invisible to the naked eye.

Based on this information, traders can accept further price movements and adapt this system accordingly.

Forex Metatrader 4 trading platform

  • Free $ 30 to start trading immediately
  • No deposit required
  • Your account will be automatically credited
  • No hidden terms

xm no deposit bonus

How do I install the Wildhog Regular Divergence Forex Trading Strategy?

  • Download Wildhog Regular Divergence Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader directory / Experts / indicators /
  • Copy the tpl file (template) into your Metatrader directory / templates /
  • Start or restart your Metatrader client
  • Choose the chart and time frame in which you want to test your forex system
  • Right-click on your trading chart and move the mouse pointer over "Template".
  • Move right to select Wildhog Regular Divergence Forex Trading Strategy
  • You will see that the Wildhog Regular Divergence Forex Trading strategy is available on your chart

* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already integrated in the MT4 indicators of the MetaTrader platform.

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Wildhog Regular Divergence Forex Trading Strategy

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