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I like rsi;
about once a year/if I forget to look @ it once a year/fine also;
Moving averages, all the time;
but they do lag/so I like to use them with discretion...…………………………………………………………………………………………………………….
The results produced by the WRSI Divergence Tool, like most tools, depend on how the tool is used.
For example after a close look at the top three chart images here -
https://elitetrader.com/et/threads/...nd-signals-both-good-and-bad-pitch-in.348056/
after a close look... the argument might be made that instead of a lag, in this case, the WRSI indicator's [Lower High] Diverged from the new [Higher High] made by price, the indicator diverged from price during the 2:00 to 4:30 AM time span on July 23.
The WRSI Divergence preceeded the next of a series of lower highs in price.
Preceeded, not lagged.
Furthermore, this turns out to be a Heads-Up to a very nice opportunity to short the NQ early and often for more than 24 hours following the signal. Note the difference between a Signal and a Trigger. One could reasonably conclude that in this case, repeat In This Case, lol your mileage may vary, the WRSI Divergence Preceeded The Price Move.
Additionally, if one uses this tool, the WRSI, as a Heads-Up indicator, then the next tool to apply might be the strangely named 'Failure Swing Pattern'.
1) WRSI Divergence, 2) Failure Swing Pattern.
Time to Trigger an Entry? Closer, but what else is over there in that tool box that might give us a Trigger? How about that T-Line Trade of Bigalow's? That's made to Trigger. What's it say? Yep, if you wanna be aggressive and book some time, this is a trigger that lines up well in this case, and as it turns out, worked just fine for a quickie scalp down to the hammer that signaled the scalp was done four bars later.
But that's not all folks, lol, don't touch that dial, that 200 needs some lovin' attention from price and maybe gonna get it. Let's relax, remain aware and see what happens.
If a trader watched the price action around the fitty, what would be seen is that after four or so bars exist entirely below the 50ma, then fail in an attempt to rise above the fifty and that red resistance piv up there, and another T-Line Trade Triggers, we got us a fitty to 2hun trade.
So far, the WRSI has heralded some good action ahead, Good Times. The Action Followed The Heads Up. No Indicator Lag, nope, that looks like Indicator Lead - IN This CaSe, ymmv. Depends on How the tool is used.
As the next 28 hours unfold, It's Party Time. Rinse Repeat
Does this happen each and every time without fail? Why Sure.
Guaranteed Absolutely YES. ALLWAYS WITHOUT FAIL, BUT Only If you buy one of the few shares of the Brooklyn Bridge That I Have Left, Just For YOU! Call BR549. Operators are standing by.
