Our standard setup "H4 divergence + M1/M5 MagicEntry" occurs many times per month. You will love this setup type because it can bring you big winning trades on a regular basis.
The underlying concept behind this setup is this:
- A MACD divergence is signaled by the Divergence Scanner on H4. The divergence alone is too weak to trade.
- You activate the MagicEntry-Alert Indicator to give you an entry signal on M1 and M5 in direction of the the divergence
- Once you get a signal then you can be assured that the price is running extremely fast into the direction of the divergence.
- The strong momentum gives you a high probability for a winning trade
The following screenshot shows the details of a trade that recently occurred on GBPNZD in direction of a divergence. You can see the price level where you get the entry signal and possible stop / target level (you can define your own stop/target levels of course according to your preference):
The following screenshot shows the setup chart (H4) with the divergence. Labeled with the black arrow you can see that the entry signal was created in the middle of the very fast upward move. A good target placement could also be the descending trend line which acts as resistance:
After you understood this setup type, I'm sure that it will be one of your preferred trading setups :)