I've been playing with this most of the day and it looks really good.
Capito has a thread running using Sig Trader's currency indexes. That is where I learned about them. I couldn't keep up with his method because the rules seemed to change every day, but it introduced me to the indexes.
http://www.forexfactory.com/showthread.php?t=317893
I don't know exactly how these indexes are derived, but they show charts of the individual currencies.
There is a EURLFX, GBPLFX, AUDLFX etc.
Below is a screen shot of the EURRLFX (Top) vs the EURUSD (Bottom).
This is using the 15M TF, but any TF can be used.
The red trend lines show the divergences. The white arrows show the direction of the trade. All the trades are placed on the EURUSD. The indexes can be traded but they have something like a 20 pip spread.
I have three winning trades running that I placed tonight. All were obvious divergences.
EURLFX - EURUSD
AUDLFX - AUDUSD
NZDLFX - NZDUSD
Looking back on the charts, there are very few losers.
I would place a SL below/above the nearest swing low/high. TP would be equal to the SL.
Capito has a thread running using Sig Trader's currency indexes. That is where I learned about them. I couldn't keep up with his method because the rules seemed to change every day, but it introduced me to the indexes.
http://www.forexfactory.com/showthread.php?t=317893
I don't know exactly how these indexes are derived, but they show charts of the individual currencies.
There is a EURLFX, GBPLFX, AUDLFX etc.
Below is a screen shot of the EURRLFX (Top) vs the EURUSD (Bottom).
This is using the 15M TF, but any TF can be used.
The red trend lines show the divergences. The white arrows show the direction of the trade. All the trades are placed on the EURUSD. The indexes can be traded but they have something like a 20 pip spread.
I have three winning trades running that I placed tonight. All were obvious divergences.
EURLFX - EURUSD
AUDLFX - AUDUSD
NZDLFX - NZDUSD
Looking back on the charts, there are very few losers.
I would place a SL below/above the nearest swing low/high. TP would be equal to the SL.