MACD Bullish and Bearish Divergences,,thats it! When theres a MACD BEARISH DIVERGENCE i go short when the MACD crosses and put a protective stop on the last high! (Vice versa for going long) Very low risk trade high potential trading.
Then if the divergence carries, if im short i just put a protective stop 5 ticks above the last high and walk it down like a flight of stairs. Some of my divergence trades last over a month! Then when i get stopped out i go look for other markets with a divergence. Also, when a divergence doesn't go anywhere, most of the time you don't get hurt!! Your loss is very small OR by then you at least have your stop brought to breakeven!
DIVERGENCE trading is only system i have found where i have a lot of confidence in taking the trade, i dont second guess it i just place the trade. For me Divergence trading is very low stress trading!
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