Divergent – Nadex 5 minute binary strategy for ITMs, OTMs and ATMs

RULES –

1. Open an M1 chart in MT4
2. Add the Renko Live Expert and use the Inputs below:
3. 
4. ***Note*** – Make sure that Live Trading is turned on to use the Renkos
5. Open the offline chart M2 for the asset you have open
6. Right click the chart > Template > Slick Trade Divergent
7. Whenever an arrow appears above or below a renko bar, this means that the MACD has crossed and it is time to enter the trade in the signaled direction
8. For added confirmation of the trade:
9. Take a look at Momentum
   1. Is it showing the same direction as the MACD and MACD Divergence?
10. Navigate to the Nadex platform
11. Click on 5 minute binaries
12. Open the correct asset
13. See which contracts are available (ITM, ATM or OTM)
14. Enter the trade and leave until expiration
15. Please refer to the rules from the member below

This strategy was founded by one of our very own members, and I would like to personally thank him for sharing this strategy and setup with all of you.  This strategy is a branch off from the Karate Kick founded by George in the room.  Although they are both for short term binaries on the Nadex platform, Divergent has become a solid strategy for not only ITMs, but also for ATMs and OTMs.

He lets all of these trades run until expiration.  He posted results the other day of a 4 hour period, 15 signals, 15 out of 15 were winners.  The win percent on these trades is extremely high much like the Karate Kick, however it opens up more opportunity for lower risk trades and zero hesitation on whether or not the MACD actually crossed or not.

Rules From Our Member

When considering the trade setups for Divergent, there are two scenarios that should be looked at.

It should be noted that since the charts are dealing with Renko. The bars on the chart do not align to a timeframe, they instead align to the time that it took to move a certain price within the confines of the Renko advisor.

Pre-trade

The first scenario is the pre-trade. The indicators to be looked at are as follows:

• Divergence Lines
• Squeeze

You should look for either one or both of these conditions to match.

• Red Divergence Line for a Put/Short and/or Squeeze indication above 8 for a Put/Short
• Green Divergence Line for a Call/Long and/or Squeeze indication below -8 for a Call/Long

Once you see the divergence line start looking for the next scenario.

Trade

The second scenario is the trade. The indicators to be looked at are as follows:

• MACD and MACD cross Arrow
• Momentum

You should look for the following conditions to match.

• Red MACD cross arrow for PUT (verified on actual MACD), Momentum indicator slanting down or below line.
• Green MACD cross arrow for CALL (verified on actual MACD), Momentum indicator slanting up or above line.

Once you see the following you may enter a trade if you feel comfortable.

REMEMBER TO PRACTICE UNTIL YOU ARE COMFORTABLE!

Optional Step

You can open the Nadex chart and look at the moving averages as outline in the Kick Strategy to see if the price has moved above or below the line for the subsequent signals on the Divergent strategy.

SCREENSHOTS –