Here is something I have been noticing for quite a while, and thought it time I got serious about it.
This is trading divergence between two highly correlated pairs.
I find the correlated pairs at
http://www.mataf.net/en/tools/correlation-tableI use the daily correlation chart.
Presently these pairs have a correlation factor of >80
EUR/USD - EUR/CHF
USD/JPY - EUR/JPY - GBP/JPY
EUR/USD - USD/CHF (Negative correlation)
The chart below shows the EUR/JPY and the GBP/JPY, together.
Basically, if one pair makes a lower low and the other does not, you buy the one that does not.
If one pair makes a higher high and the other does not, sell the pair that does not.
I wait until both pairs have turned in the direction of the trade, before entering.
On the charts, I have removed the candles/bars and replaced them with a Simple MA, 1 period, typical price.
This gets rid of the whiskers and a lot of the noise. Also, it works and I like it
I used a 14 ATR x 2 as both the SL and TP.
I chose this at random. It can be improved upon.
I used a 4H time frame. It can be traded on any time frame.
Here are the results of the chart shown.
8W - 0L
Total profit = 1640 pips.
This is from Feb.25, 2009 through last Friday.
Any questions and suggestions are welcome.
I'm sure it can be improved upon.
Also, double check my results. I may have overlooked some trades. If I did, I will correct the results.
I don't want any EAs or indicators or filters. This one will stand on its own.
В тему о дивергенции пар , кто может переведите ...
