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Zig Zag with RSI Divergence.

Published online July 2020. (not tested myself).

The strategy is based on Divergence in different way
Timeframe: any; scalpers should choose M5
Pairs: any. Claims a 75%winratio and 1:2 risk reward ratio
So what we gonna need with this strategy two indicators.
1) Zig Zag with Depth 50.

2) RSI period 140

image.thumb.png.c6298c855f3e4803b3d118c34bb1edd9.png

Buy Setup:
1) Wait for the price to break the last bottom, the zigzag indicator make it clear
2) Next the rsi need to make a divergence (higher high) if not then we will not trade
3) after the rsi is making a divergence we wait for the price to close above the latest low then we take a trade and we put the sl and tp at the latest high

 

image.thumb.png.0f8244283ff9bdb9b24c5fda3a6aab23.png

Sell Setup:
1) Wait for the price to break the last top, the zigzag indicator make it clear
2) Next the rsi need to make a divergence (lower low) if not then we will not trade
3) after the rsi is making a divergence we wait for the price to close below the latest high then we take a trade and we put the sl and tp at the latest low

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Tom, is an RSI value of 140 periods for the 5 minute chart or all time frames?  🤔

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Posted (edited)
13 hours ago, dmedin said:

Tom, is an RSI value of 140 periods for the 5 minute chart or all time frames?  🤔

yeah, 140 doesn't make sense on my chart while 14 looks right (any time frame) tho in his pics he has 140. will try to ask today.

just remembered he's on holiday.

Edited by Caseynotes
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The zigzag indicator is a new one for me.  Will need to read up on it.

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The Zig Zag indicator is often used in conjunction with Elliot Wave Theory to determine the positioning of each wave in the overall cycle

 

Oh god, Tom 🤪🤯

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The zigzag Indicator is the holy grail of Indicators/lines if you fathom out how to use it correctly - A zigzag Indicator highlights vectors and points of Instantaneous Balance Stability - The clue was given in my How to Win thread which showed them on some charts - Keep referring to W D Gann for some reason!

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Think I posted this strategy for testing somewhere else but forgot where, I came across the accompanying pdf but found I can't post that so here's the video again.

Dip buying on pullback failure with entry on breakout past recent high, simple and quite sound, at least worth a play on demo. Maybe even trial on higher time frames with MAs adjusted accordingly.

 

 

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18 hours ago, Caseynotes said:

Think I posted this strategy for testing somewhere else but forgot where, I came across the accompanying pdf but found I can't post that so here's the video again.

Dip buying on pullback failure with entry on breakout past recent high, simple and quite sound, at least worth a play on demo. Maybe even trial on higher time frames with MAs adjusted accordingly.

 

 

 

The video is on the “Trade Planning and Testing” thread where it was commented on by THT.

 

 

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18 hours ago, Caseynotes said:

worth a play

Why, Tom?

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Just now, AndrewS said:

The video is on the “Trade Planning and Testing” thread where it was commented on by THT.

The guy who hawks Gann bullsh!t and advocates a buy-and-hold dollar-cost-averaging investing strategy under the guise of 'new moon trading'?  Must be a great idea then...

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