are divergences really worth anything?

Quote from Covertibility:

Even if trades are posted real time doesn't mean the poster is actually involved in the trade. If everyone sees a flag breaking to the downside, everyone will try to short it and as a result no one will get a fill, why? First ya can't short w/o an uptick...
More...

Depends on what your trading and how much hesitation your have (price chase range) after you receive a trade signal.

Simply...there are lots of trading vehicles that don't have an uptick rule.

Also...not everyone will see a flag breaking to the downside or not everyone will see the same exact same pattern as you may see know matter how much common knowledge about that pattern.

What you see on a particular chart interval as a flag (continuation pattern)...someone else may see on another chart interval as a Spike & Ledge pattern failure...another trader may see on another chart interval as a counter-thrust failure...another trader may see a Bearish Engulfing candlestick reversal pattern on a completely different chart interval...

et cetera.

Thus...I can go out on the limb to say that you, I and another trader are looking for different trade signals via patterns, price action, indicators or whatever...

therefore are not trying to enter that particular trading vehicle about the same time.

Think outside the box.

Its a big world out there in the markets.

NihabaAshi
 
Essentially we're saying the same thing, in that chart patterns are much like Rorchach tests. Human's have a very strong tendency to want to put order to random events, images and data, and charts play very well into that sometimes harmful tendency.

There is a tremendous body of total crap published every day that plays into our desire to see order brought to chaos, and to try to convince us that we can profit from it.

So when I get red is when I see patterns published in hindsight by stock market gurus, as though they are a path to riches for new traders.

I don't believe the market is random. A sharp trader certainly can profit from abberations in price movement and deviations from perceived value. But it's real easy to push this thing too far.
 
Quote from illiquid:

I trade intraday almost exclusively on divergences, although I'd never use a divergence between a price and its own derivative (stoch, MA's, macd etc).
More...

It would be great to see an example, so that we can all profit from your hard work.:p

I don't mind eating crow. I haven't had it in a long time.
 
Quote from lindq:



It would be great to see an example, so that we can all profit from your hard work.:p

I don't mind eating crow. I haven't had it in a long time.
More...

Check out a series of past posts (twelve in number). They address your seeking an opportunity to eat crow.

The reason they were posted was to cover your viewpoint. By watching a situation unfold step by step in 12 steps it does become clear to most people that any method anyone chooses and works on hard enough, can , if fact, bear fruit.

This point has been made ad nauseum; at some point you will get it.

After being superficial as beginners most people settle down and make sense of the opportunities that they recognize. There is a lot to be said for that. Not much to be said for being eternally glib; you don't even ever get to eat crow.
 
Quote from Grob109:

Check out a series of past posts (twelve in number). They address your seeking an opportunity to eat crow.

The reason they were posted was to cover your viewpoint. By watching a situation unfold step by step in 12 steps it does become clear to most people that any method anyone chooses and works on hard enough, can , if fact, bear fruit.

This point has been made ad nauseum; at some point you will get it.

After being superficial as beginners most people settle down and make sense of the opportunities that they recognize. There is a lot to be said for that. Not much to be said for being eternally glib; you don't even ever get to eat crow.
More...
Excellent arguments, Grob. Way to go! :D

It is a funny place, EliteTrader.

Scientist.
 
Quote from illiquid:

I trade intraday almost exclusively on divergences, although I'd never use a divergence between a price and its own derivative (stoch, MA's, macd etc).
More...

So if not price and an indicator,
price and what?

jd
 
Quote from Grob109:



Check out a series of past posts (twelve in number). They address your seeking an opportunity to eat crow.

The reason they were posted was to cover your viewpoint. By watching a situation unfold step by step in 12 steps it does become clear to most people that any method anyone chooses and works on hard enough, can , if fact, bear fruit.

This point has been made ad nauseum; at some point you will get it.

After being superficial as beginners most people settle down and make sense of the opportunities that they recognize. There is a lot to be said for that. Not much to be said for being eternally glib; you don't even ever get to eat crow.
More...

Pulling out the needles already, Jack? :(
 
Quote from Grob109:



Check out a series of past posts (twelve in number). They address your seeking an opportunity to eat crow.
More...

They can address the issue all they want, put posting charts illustrating examples of divergence in hindsight does not have me sitting down to crow dinner. Not yet.

My challenge is for someone to post a trade in real time that is clearly initiated by a divergence signal. And a followup chart would be appropriate to indicate the setup.

I'm not trying to be thick headed here. I know much, but always have much to learn. I simply would like to see it done, as I personally have not been able to accomplish this magnificant feat beyond BE and the sense that I am playing in a field of randomness. And randomness doesn't pay the bills.
 
You must log in or register to reply here.
Back
Top