Awesome Oscillator Renko Divergence Trade from August 17, 2015

Using Divergence as a trading strategy can be rewarding and using the awesome oscillator with Renko bars can be quite simple.

Here is an example from today’s trading on the EURUSD currency pair.

You can see that this entry provided a nice profit, above all, it was easy to see the divergence pattern. A person could be working with several charts at the same time and observing divergences.

In another post from yesterday I pointed out a divergence on the same pair. While the divergence did give trade, it was not the greatest profit. Some of them are good and some are not so good, as with any trading strategy.
Here is the chart I am referring to, probably the best entry was to wait for a couple bars to be above the 0 line on the oscillator to ensure that there was a good move.

Divergence trades are plentiful, and the tools that can be used are several.

Here are a few examples of divergence:

http://boutiquetradingstrategies.blogspot.ca/2014/11/what-is-best-for-determining-divergence.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/can-we-use-twiggs-money-flow-for.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/exelon-is-showing-bearish-divergence.html
http://boutiquetradingstrategies.blogspot.ca/2014/11/divergent-opportunities-for-november-4.html
As I mentioned previously, divergence is not a fool proof method for a trading strategy, it is merely a tool and must be confirmed by price action

Good Trading..!

Renko Awesome Oscillator Divergence Trading Strategy

A trader usually wants to know when the end of a trend is about appear so that he can adjust his trading strategy to take advantage of the next trend.

Of course, divergence between price and oscillator is one way to be prepared.

One of the indicators that will point out divergence is the Awesome Oscillator which is found in most charting packages.

Using Renko bars together with an oscillator is a great way to eliminate the chop and see clearly when there is a divergence appearing.

I have attached three charts on which I have marked divergences, just to give an idea as to how simple it is to spot them.

Divergences are not to be traded blindly as the market does not always change trend with a divergence. Therefore we have to observe price action before making any entry.

Screen time and practice is required to hone the skills in trading and divergence is not a shortcut to any success, the hours have to be put in to learning how to use divergence, the same as any other tool.

Enjoy!

Bill Williams Chaos Trading Strategy Part 4 (automation)

Hopefully this is the post in the series that is going to generate some great interest in the Bill Williams trading strategy.

I will demonstrate how Forex Strategy Builder can take these three indicators, the Alligator, the Awesome Oscillator and the Gator and make them into a trading system that generates some excellent money, fully automated.

Bill Williams Chaos Trading Strategy Part 3

Another part of the Bill Williams  trading system is the Gator which will be one of the lower indicators in your chart.

The Gator Oscillator is, in a way, similar to the Macd, in that it plots the convergence and divergence of the moving averages that form the Alligator lines. It actually demonstrates momentum.

Here are some articles to depict its use.

Bill Williams Chaos Trading Strategy Part 2

This is the second article on the Bill Williams 'Trading Chaos' Trading Strategy.

In this one I will present some information on the 'Awesome Oscillator' and its application.

Using  the Awesome Oscillator with the Alligator Indicator can make for the building of a very powerful and yet simple trading system.