Test Drive This Logic…

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(Bpb = Buy PullBack, Bbr = Buy BReak)

Chart is on 30 minute.

Download the RSI divergence routine from my blog – you’ll find it under the posted articles.

Set the period to 16 and adjust two of the fixed lines, the 77 to 73 and the 23 to 26.

Dowload the _Primary_Secondary routine as well.

The logic behind the label is the following. It will look for the last buy/sell signal. If it is a buy, it will suggest a primary buy at or below the latest 30-min Weight minus 12 pips,  which would be the preferred value for a pullback, and a secondary, break out entry to add to a position or if you missed the first turn.

You can then hold safely until the 3rd high RSI read (above 73).

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On the above picture you can see that there were 2 more opportuinities to enter at the high base, again at/around the green line and the add on at the red one. You will not have the plots, but you would see the numbers and the direction in a form of a label.

Just the opposite would be true for the sell side.

You should be able to get away with a 20-pip stop for the most part, and I think that’s pretty awesome…

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