Strategy Name: MACD_H Divergence

Short Name: MACD_Diverg

Type: Counter trend

Long Conditions:
End of corrective moves after Spike exhaustions
Early bullish cycles
Oversold conditions

Set up Long
Trend is down prices making lower lows
MACD_H potentially making higher highs within 20 40 bars preferred
Part C is less than 50% of Part A
Narrowness of the price bars preferred prior to trigger
Downward trend is flattening
Volume diminishes, prior to divergence forming
Higher probability when a channel divergence exists
Higher probability when Force Index divergence exists
Entry
Look to buy using price action of a V1 or combo entry trigger
A false break of the previous failed support
Price trigger can occur first followed by price moving above Xover

 Stop
Utilize a stop below the trigger bar low
If trigger forms with a wide range bar, watch mid-point of the trigger bar as support
Target
Expected move is back toward average or 1ATR
Scale out option is take partial profits after a 1ATR move, then a 2ATR move then trail a stop
If a trend change is to occur the -1ATR will tend to act as support

 Time Stop
Once move begins should reach its target within 3 7 bars.
Scratch trade if divergence un-triggers

Short Conditions:
Mature bull trends market internal turning negative
Early correction cycles
Overbought conditions

Set up Short
Trend is up prices making higher highs
MACD_H potentially making lower lows within 20 40 bars preferred
Part C is less than 50% of Part A
Narrowness of the price bars preferred prior to trigger
Upward trend is flattening
Volume diminishes, prior to divergence forming
Higher probability when a channel divergence exists
Higher probability when Force Index divergence exists
Entry
Look to short using price action of a V1 or combo entry trigger
A false break of the previous failed support
Price trigger can occur first followed by price moving below Xover

 Stop
Utilize a stop above the trigger bar high
If trigger forms with a wide range bar, watch mid-point of the trigger bar as resistance
Target
Expected move is back toward average or -1ATR
Scale out option is take partial profits after a 1ATR move, then a 2ATR move then trail a stop
If a trend change is to occur the 1ATR will tend to act as resistance

 Time Stop
Once move begins should reach its target within 3 7 bars.
Scratch trade if divergence un-triggers