are divergences really worth anything?

well, one thing i know is not to argue with acrary. so it appears there is something to the divergence concept. :)

but as nihabaashi said, how you use it is important. like if requiring divergence as an entry condition leads to missing too many trades, it may do more harm than good.

thx everyone :cool:
 


I don't understand the logic of using price derivate indicator to find divergence with price, instead I can see the logic of using volume derivate indicator.
What's your opinion ?
 
Quote from mark1:



I don't understand the logic of using price derivate indicator to find divergence with price, instead I can see the logic of using volume derivate indicator.
What's your opinion ?
More...
my opinion? i don't think you want my opinion. :p
 
Quote from mark1:



I don't understand the logic of using price derivate indicator to find divergence with price, instead I can see the logic of using volume derivate indicator.
What's your opinion ?
More...

Some trader use divergence between price and volume along with candlestick analysis...

such as price action only traders (no indicators).

Think outside the box.

In other words...divergence between price and indicator isn't the only way to play divergence...

although its the most popular to use and discuss.

Goodnight all.

NihabaAshi
 
Quote from Gordon Gekko:


i did, also. it is:

what value does a divergence really add if you can find one at any time just by changing the indicator's settings or using a different indicator? think about that. how can it add any value if divergences exist at all times depending on the indicator or the indicator's settings?!?!

maybe i can put a 6 period CCI on a 5 minute chart and get a divergence. if i adjust the setting to 14, i may not have a divergence.

if i use MACD and the setting is 14, 3, 1 and i don't have a divergence, maybe i can change it to 16, 1, 5 and get a divergence.

how can this factually help at all?! it may SEEM like it is sometimes, but DOES IT REALLY GIVE YOU ANY BENEFIT WHAT-SO-EVER??
More...

NOPE
 
Saying divergences don't work is like saying retracements don't work.

You have to find the right circumstances for each to work.
 
Quote from nqoos:

master divergence, master your self it will work

http://www.nqoos.com/Divergence.htm

Profitable Trading to all

NQoos
More...

Nice website nqoos...it's guys like you that give me faith in the
goodness of mankind. People don't realize it, but you're sharing(for free),
what some traders are paying $2,500 and up to learn from vendors and
seminar teachers.

Thanks!
 
Quote from Gordon Gekko:


disagreeing only doesn't usually persuade people. what are you saying nope to?

Divergence as anything of value.


what are your thoughts?

Do this for a month:

My KISS rules for any expert approach.

A. Trade the slowest chart possible to pick off all trends including lateral swing moves. (5 min to 30 min intraday.)
B. Wait until the market settles down at open(15min max)
C. Always go in on the first bar that breaks out beyond prior bar after B occurs.
D. Stay on the right side of the trend. Only reverse when the trend fails to continue. (Use trend lines and get break out of trendline)
E. When trend doesn't build after reversal, continue quick reversals to stay on right side of chop or whippy market. (Use lateral trend lines to show the high and low of chop)
F. When consolidation of E ends with centering of latral trend, exit and reenter on break out of the pennant and go to D.
G. Use MOC.


For example (See Attached chart):

Today (Wednesday), I did chop until 10:10 (S,L,S,L,S) region X and stayed in S (1020.3 reverse) till 12:00 AA; L till 13:20BB; S till 16:00 (after FF); L till MOC.

Do you see any divergence there? No, there is no divergence there.
More...

Post your stuff that you are doing on divergence. We all want to see what you mean when you changed all those indicators.



TIA.
 

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