Ciao a Tutti,
this post is a follow-up of “How to Boost your Divergence Trading” that I wrote yesterday. If you remember the EURUSD H4 chart of the last 5 months showed 15 divergences (100% winners by the way) thanks to SintesiFX applied to the chart. If you want to have an idea of how well SintesiFX performs in spotting divergences, just use another commonly available oscillator and make a comparison. As an example you can consider RSI (Relative Strenght Index) which is one of the most known indicators among traders. Here are the divergences you can identify with RSI on the same EURUSD H4 chart:
Only 5 divergences during a 5 months period, and none of them showing up on chart with the same dramatic evidence of SintesiFX. In particular the 5th divergence in the chart above can barely be noticed.
SintesiFX works pretty well also on smaller timeframes, but in that case of course you must be a skilled manual trader in order to take advantage of the many trading opportunities that show up. You can also open two charts of the same currency pair and apply a SintesiFX indicator for the base currency and another one for the quote currency. As an example in the two EURUSD M5 charts below I’ve used SintesiFX(EURxxx) and SintesiFX(xxxUSD) respectively:
In this case the charts show a total of 14 divergences, and only two of them with a very limited profit potential (price moves in the expected direction for about 10 pips and then sharply reverses). The other 12 divergences had the opportunity of generating nice winning trades.
I think SintesiFX is a very good tool to include in your trading arsenal. Even if you let robots enter trades on your account the divergences that you can identify with SintesiFX may turn out very helpful in deciding the optimal time to manually close a winning trade before a reversal.
SintesiFX will be on sale tomorrow. All current customers will be able to buy it at a very low price 😉 This release will be also an opportunity to test another protection mechanism that will hopefully replace Guardian soon on all our products.
Stay tuned 😉