Trade system___General Divergence and ZhangGe's Divergence

Hello,

Here I introduce to you two kinks of divergen: the General Divergence and ZhangGe's Divergence. The accuracy rate of it is more than 70%, you ca find this pattern in the forex history charts and test by yourself.

Some books or videos also once introduced divergence, and I do some further work to tell you the ENTRY, STOPLOSS, TARGET and the accuracy rate.

Here, I use William’s Percent Range indicator, and set the period parameter with 5; and 5 day’s SMA, here I illustrate the top divergence in detail, it is similar for bottom ones.

I have made a video, you can also view it on Youtube:

http://www.youtube.com/watch?v=vJayBoUuGkQ

------------------------------------------------------------------------------------------------

General Divergence

RULES:

1.the close price of B is higher than the close price of A ,but the indicator of William’s Percent Range is lower

2.F break 5 day’s SMA and the correspondent indicator of F is lower than any indicator digit between A and B

ENTRY:

When break the low price of F

STOP LOSS:

The high price of F

Target:

Target 1: the price of the neckline - the SAME space between neckline and the close price of A or B. the neckline is the 1.2708 here, and for top divergence, between the close price of A or B, we choose higher , so we choose the close price of B here. So , our target is the neckline 1.2708 - (the close price of B 1.2868 – the neckline price 1.2708 ) = 1.2548

Target 2: the open or close price of A.

Neckline: it is the lowest open price of close price of candles between A and B, here there are 2 candles between A and B, a bear candle and a bull candle . the close price of the Bear candle is 1.2810, the open price of the bull candle is 1.2808, so we choose 1.2808 here.

----------------------------------------------------------------------------------------------

ZhangGe’s divergence

RULES:

1. the high price of B is higher than the close price of A ,but the indicator of William’s Percent Range is lower

2. F break 5 day’s SMA or break the neckline between A and B; and the correspondent indicator of F is lower than any indicator digit between A and B

ENTRY:

When break the low price of F

STOP LOSS:

The high price of F

Target:

Target 1: the price of the neckline - the SAME space between neckline and the close price of A or B.

Target 2: the open or close price of A.