How to Trade with SintesiFX 11

Ciao a Tutti,

thanks a lot for the great response to the release of SintesiFX indicator. We did not expect so many people interested in this release, since we introduced SintesiFX only few days ago. We are not selling only the indicator, but a complete “SintesiFX package” with 2 indicators + manual + ebook that should help you dramatically in trading divergences. The package will be on sale until Sunday at a bargain price for current customers:

Today I’d like to show you a classic “SintesiFX trade” on a hidden bullish divergence pattern. It is a recent trade on GPUSD on a 4 hours chart:

Both targets (+75 pips and +150 pips) were hit within the first 48 hours. In the “Divergences Ebook” I explain in detail the timing and how to set SL and TP levels for these trades. I put side by side a line chart and a candlestick chart in order to show exactly entries and exits. There are also cases when the trade is clearly “invalidated” and you can close it before the actual SL is hit, so that you further reduce your risk. By the way, if you have already purchased SintesiFX please check again the ebook since I have added other two examples of long trades this morning. I’d also be glad to hear your feedback about the ebook, so that I can further clarify some points or make some additions if needed. Please leave a comment below 😉

If you still don’t know what’s all this fuss about SintesiFX, then here are the resources for you:

Also remember the $14.99 discounted price is only available until Sunday 22nd of April at the markets opening 😉

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11 thoughts on “How to Trade with SintesiFX

    • Paolo Post author

      Hi Momo,
      as I’ve said many times in the comments of the recent post and as we’ve also written in the sell page the “white lines” are not automatically drawn by the indicator. I’m sure you can learn how to draw them in a short time, also with the help of the HyperFractal indicator which pinpoints the most important local highs and lows on the price. Ciao, Paolo

  • Paul

    Hi Paulo,

    Thanks for the great indicator and all the work you’ve put into it 😎
    I have been doing so-so in trading (profitably at least) but not how I want and divergence is one of those things that I have not conquered, in fact I have almost avoided it and yet I desperately want to ‘master it’ and with the help of this indicator and your ebook, I am very optimistic that the time has come!!

    Grazie mille,


    • Paolo Post author

      Hi Paul, I’ve underestimated the importance of divergences for a long time when I started to trade Forex and code MQL4. Divergences are a difficult topic both for manual and automatic trading. However you cannot “avoid” them if your really want to understand how money flows in the markets. I hope you can have great success trading divergences 😉

    • Paolo Post author

      Hi Paul, I’m working on the “DuettoFX Inverso Trader” EA which is based on the same approach of trading divergences. The spread line of DuettoFX often matches local highs and lows of the price, and this makes things easier to code. Especially if you put smoothing=1 in the DuettoFX settings there is a close match between local peaks in the price and local peaks in the indicator. The situation with SintesiFX is slightly different. SintesiFX can anticipate up to 4 bars the price, or it can lag up to 4 bars behind the price. This makes the code a bit more difficult 😉

  • Dan

    Hi guys, thanks for sharing with us such a useful tool! Thanks to the ebook and indicator I finally understand divergences like never before.

    Is it easier to view divergence with the base currency or quote currency? The dramatic example you posted a few days ago used xxxUSD on the eurusd chart. I’ve compared that to using EURxxx on the same chart and it seems easier to read. It also looks like for example on GBPJPY, the xxxJPY is much more representative of the price action than GBPxxx.

    A request – is there a way to combine both base and quote currency Sintesi lines into a line that could display all the divergences on one indicator? At the moment, I guess it means viewing both base and quote Sintesi lines for each pair on each timeframe which can be cumbersome.

    Having the white lines and arrows automated would really help – not just from the lazy point of view. It also would save time viewing many charts and look clearer. When I draw lines in MT4 they extend off the page to one side making a big mess and can be lost when switching timeframes. So having the lines drawn would look clearer and save a lot of time.

    Another request – if the divergences could be automatically ranked in potency and that number displayed on the chart for each divergence that could help decide the profit potential. I find it can be easy to spot the divergences retrospectively but harder to spot them as they are happening.

    Are normal or hidden divergences usually more powerful or is it quite random?

    Finally – this is another reason to have a members forum so we can build confidence by sharing analysis and trading ideas. :)

    • Paolo Post author

      Hi Dan, for each pair I suggest you take a look to the SintesiFX of both base currency and quote currency. Depending on the period one or the other currency may help you identify divergences more easily.
      I had the same idea of combining the SintesiFX lines of base and quote currency. Let’s make an example: on a EURUSD chart let’s calculate A=SintesiFX(EURxxx) and B=SintesiFX(USDxxx). Then we calculate the ratio A/B which should give a combined synthetic view of EUR/USD. I’ve called this indicator “SintesiFX_single” (it does not require any input parameter). I’ve found that this indicator mimics very closely the underlying currency pair and it is not very useful in identifying divergences.
      Keep in mind you can put many SintesiFX in the same indicator subwindow, and the final effect is very similar to the PotenzaFX Powerlines (however the actual values of each line are very different from the powerlines of PotenzaFX).
      Regarding the lines on MT4 you should deselect “Ray” in the Trendlines properties window. There are many aspects involved in tracing automatically these white lines, and we may easily end up with a chart that is not easy to read at all. Anyway, I’m working also on this.
      Divergences may be ranked depending on the discrepancy between the slopes of the white lines on the price and on SintesiFX.
      I personally feel more confident trading regular divergences, but I’ve seen that also hidden divergences give great trading opportunities, so I try to keep a look and trade both types.
      I agree with you about the forum, it is definitely needed with the variety of tools introduced so far :-)

  • Tony

    Hi Paolo, Can you please clarify the correct trades to use with SintesiFX.
    With the AUDUSDH4 the price line against the SinFX AUDxxx the indicator is now down. With SinFX xxxUSD the trend is up. Can you use either indicators and in this case enter long based on the xxxUSD divergence with the price line ?
    Are you planning a matrix chart with all currency pairs and time frames to aid picking potential trades. ? Thanks, Tony

    • Paolo Post author

      Hi Tony, on SintesiFX(AUDxxx) I see a hidden bullish divergence, while on SintesiFX(xxxUSD) there is a regular bullish divergence. Therefore my expectation is for two targets on the upside around 1.041 and 1.045. The opportunities for entering long were around 1.028 and 1.029. The idea of the matrix for SintesiFX is interesting, but I’m still far from that point at the moment. Ciao, Paolo

      • Paolo Post author

        About 48 hours later my projected targets: AUDUSD hit 1.041 on Friday morning (April 27th 2012), then 1.045 in the afternoon 😉