right, but your divergence now is on weekly so if you are trading of weekly divergences, you have to look at the weekly trend, which is up. What confuses me actually is slightly different point. B1S1 said that he is planning to trade the break out system now.. does that mean he abandoned The holy grail as invalid?
1. OP doesn't say that grail has to be in direction of a trend on that time frame (or did he mention it in a later post?); 2. Isn't grail also considered to be a countertrend signal?
OP does say that you should only trade in the direction of the trend, so it's a trend following system... at least in my understanding...
The RSI is the Holy Grail? I can't believe it! It's been found after all these years! By George, you've done it!
I thought you mentioned that you sell premium in an earlier post. Do you sell naked options with a stop based on the grail trades or not? I was thinking about trying that with real money based on grail setups. Also, if you do sell options, how far off do you have them set for expiration?
@Buy1Sell2 Thanks for sharing. Would you mind posting some charts where this method didn't work? I always want to see the negative before I see the positive. Thanks in advance.
Yes --mental stop of course on options--I think one needs good directional analysis for selling naked premium and so better off to trade with the trend. I usually don't like options with more than 2 months til expiry.