Day Trading 4 Winning Divergence Trades And Some Great Tips

Day Trading 4 Winning Divergence Trades And Some Great Tips


hello traders it’s Samurai Trader here
welcome to this training session in this session today we’re going to be
discussing a number of trading strategies that will get you well on
your way to achieving your target of up to four hundred dollars a day per
contract most of you know that is my target to hit within the first two to
three hours or my two to three hour window of trading my personality is and
I don’t have the time or the inclination to really sit by the screens all day
personally I find it exhausting as a day trader so I’m going to be showing you
four live trades that I took and explaining exactly what I did and why I
took these trades now we’re specifically going to be looking at counter trend
trading today as you hear me preach time and time again you do not start
counter trend trading until you are profitable as a trend trader absolutely
critical because counter trend trading is a higher risk form of trading even
though as you’ll see it can be very very profitable but I’ve been doing this for
over 23 years now so it makes it a lot easier and even then you want to really
focus in on the types of counter trend trades that you take and of course we
cover these comprehensively in the day traders fast-track program so I’m just
going to cover them briefly in today’s session now if you haven’t already done
so please go to full screen and you can do that down here in the bottom right
hand corner as always I need to mention the risk and please feel free to stop
your recording if you haven’t if you’re new to one of my videos and you haven’t
read the risk please read their is very important as I say in every session
don’t trade with the rent money so all of this as I mention is covered in the
day traders fast-track program but let’s go and jump straight on to the charts
now this is some trading I did two or three days ago to be meaning to go back
and record this session now this is after the main market is closed
so in Los Angeles it’s um after 1:30 p.m. I should say the markets have
closed after just after 4:30 New York time so this is a fantastic market the
futures market for traders to trade basically 24 hours a day now of course
for my forex traders or those watching us that are forex traders these setups
work exactly the same on the forex market now for the sake of this exercise
we’re looking at a 55 tick chart and of course these setups work in all
timeframes and all markets so a couple of key points want to make here is this
set because I trade from 3:30 a.m. through to about 6 a.m. I’ve usually
wrapped up but then at times I’ll jump on and fire off a few trades after hours
or in the afternoon the ones that I’m about to show you but beforehand so them
I want to show you the market closes we can see here it reopens we had a classic
little la double bottom here went up you would have had a loss here this is a
classic t2 that was a loss then we come up and we had there a little double top
and a way it went now what I wanted to show you here was
this is some trades that I took let me just scroll along and actually let me go
back a little more so I want to show you something really important here traders
you hear me talk about pivot trading regularly particularly if you listen to
my recordings on a regular basis or if you’re one of my students you’ll know I
refer to pivots every single day pivots are absolutely critical that you
understand or you monitor pivots now every software program nearly every
software program should say now has inbuilt pivots in where you can apply
pivot programs and you can see here these are these lines here open high low
and close of a previous day they become support resistance areas and as I’m
about to show you on the es futures I’ll draw
horizontal lines as well for support and resistance areas and I’ll show you some
trades in a moment that I took off that now you can see here the pivots we come
down and we bounce between pivots or off pivots all the time however not all
pivots are the same in other words some are calculated differently and it even
comes down to how you have your data displayed for an example on mine here I
have this set at local time now if I made that exchange time which I’ll make
you at the moment because it will change where I am on the chart it’ll change it
where the pivots lay so what you want to do traders is to play around with the
pivot program you have and once again google it on most trading forums now you
can get pivot programs free of charge for virtually every software program
there is so let me explain to divergence trades that I took here now I’m going to
explain the high risk one but I took but I’ve been doing this for a long time and
the other thing here is that I have my probability and statistics and that is I
know how high my percentage of these are when I take them now this particular
trade I took here it was actually a t89 without divergence and my students know
exactly what a t89 is and I got in before the candle closed because of my
reversal candle right there now my stop I put three ticks above the pivot so
when you have a trade that winter as over here you make sure you stop is
above the pivot because like we see here and even down here pivots will come down
and bounce here it went through a little further but usually you’ll bounce right
off it and that’s what happened so I shorted ten contracts and perhaps if I
can just I won’t move it right now but you’d see there that was ten and over
here I exited the 10 and I then took out another ten here because what I had here
was perfect divergence which is what we call a t19 here so at a t89 here I had at t19 a along with the divergence plus a
pivot bounce traders these are extremely high probability trades let me say that
again when you have a pivot bounce with divergence and the t89 or a t19a they
are extremely high probability now at the same time exactly the same thing was
happening on the ES which I’ll refer to because something different was
happening there which we’ll go to and have a look at the chart in a moment but
what I want to point out here was is the risk management now my trades I only
allow or I execute a point five percent risk per trade on my account
so here I shorted ten contracts here and I shorted ten here so that’s one percent
of my account and on the ES almost exactly the same time I shorted ten and
ten so my risk factor was around 2% totally combined that’s absolutely
critical and in the course of recover risk management that you never ever risk
in total more than two percent so if your account size is smaller you may
only be able to enter one particular trade now if that is the case what’s the
highest probability trade for you well here this particular trade the first t18
I took was a higher risk why number one it’s a counter trend trade number two the
candle hadn’t closed number three I hadn’t bounced off the pivot so there’s
a whole lot of reasons why this is a higher restraint and I hadn’t closed
under the EMA a however probabilities so I entered I was willing to roll the dice
on this particular one now came down with a little a little T2 form and
then come up and bounced and then I had a perfect double top pivot bounce with
divergence traders beautiful all right these are just sweet
sweet trades so I was short 20 contracts it’s $1,400
thank you very much less some about was it $92 or whatever it was in brokerage
for the 20 contracts so very very sweet new traders or you would not be taking
these it’s a lot safer taking your trend trades the more experienced traders wait
for your divergence on these until you know your statistics and what that means
is you need to take every single one you can’t cherry pick these because the
stats are on your side but you’ve got to be in it to win it
very very important so divergence and the other thing too is with these types
of trades with divergence trades really good ones and these they really leave
the odds in your favor that you’re going to get a great risk reward on these now
you can see here I could have easily squeezed out excuse me
20 30 ticks out of this one I got 14 and most of you know me I’m a scalper that’s
why I get out but here you could have easily got another 14 out of this so on
your counter trends unless you’re going to take every one or unless you really
experience you want to be going for a higher return for every dollar your risk
ideally you want to be targeting $2 now what you can do is to keep it safe you
can trail your stops just remember though with tick charts at times they
can move fairly quickly now down here then we had a lovely little um our pivot
bounced off there and let’s just go along with another little double top
here 200B bounces very very very high probability but noticeable our moving
averages are now rolling over and we did have a teat in here but notice the big
candles be very very cautious on trading big candles traders because you see what
happen big candle bounce stuff for 200 and the way it went in other words and I
don’t think I’ve said this in a session fall over 34 now this something I also
want to show you it is my time it is now Friday afternoon the 16th so
it’s of course Thursday night late Thursday night in the u.s. so this
morning after the market reopened you can see here we rallied up we had a
beautiful t89 from our t89 traders we had a 34 bounce but have a look at this
and let me do a trendline okay so what have we got down here so we’ve got
another beautiful divergence trade now when you are within and your entry would
have been for the traders there was on was down here you can still count these
as double tops even if you go up 2 or 3 ticks ok give yourself a bit of little way
but look at the see a beautiful divergence on the Platinum yet basically
form them really a triple top then it fell away you bounced on your 89 before
it then collapsed away and once again follow your 34 now let’s now have a look
at the trades on I took on the ES so trade is this is the same day a couple
of days ago except or you probably can’t see them it’s just below the bottom of
your screen there were times here I’m on exchange times rather than local time so
you can see up here I had a little bounce off resistance and that was not a
pivot line that was off our resistance from a higher time frame down here we
had been some little double bottoms little double tops but here’s what I
want to show you is this here so moving along we can see up here that this is
where I showed it segments see – so you can just see it here I exited both of
these exactly on 8 ticks now 8 ticks on the ES is $100 so it’s 1250 a tick or $50 a
point for ticks to a point so I shorted 10 contracts now I had a 6 tick stop on
this particular trade and it was taken almost exactly the same time as I
executed the trade on the NQ which is bouncing off the pivot so here I had
resistance from a swing high earlier and so went up that
it went up and it ticked up five ticks oh I was getting a little concerned now
remember what I mentioned on the NQ unless you going to or unless you really
know your stuff wait – you have divergence or you get a
beautiful double top or a double top against your resistance or if you’re on
support here we then had great divergence once again okay and I had
another entry right there so what I end it was exactly the same
point so here I shorted there my stop there were six ticks up above that high
point and we and my time it was on the 200 right there and you can see it would
have been good for another point but here I got out and that was a really
nice start to my new day the NQ trades and then yes I was out there then look
what happened we tend to just bounce around between the support and
resistance area before then it collapsed away we head down here another t89 I
didn’t try to take those I’ve actually wrapped up for the day at that stage so
that was really nice so the point I want to get across here is these little
double bottoms and double tops when you have them that when you’ve got
divergence as we have here or a double top against or with the trend I should
say for a much higher probability trade so traders I look forward to seeing you
in the next video and of course I cover all of these setups comprehensively in
the fast-track program for $197 if you haven’t already subscribed to my channel
please do or purchase the program where you’ll get all of these described in
detail over 12 different strategies thank you traders and I’ll see you on
the next training video you

One Comments

  • I Am A Day Trader

    October 22, 2018

    "Get the Competitive Edge Now!
    https://www.iamadaytrader.com/2018-check-out-the-day-traders-fast-track-program"

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