Can someone share his opinion on divergence?

SunTrader said:
I "cherry picked" the MRO and the easiest to see and understand for the OP. Don't like it you can take a stroll through the cherry orchard yourself and pick your own.

Meantime I took a glance back to Thursday's ES chart and quickly found 4 more regular and 1 reverse divergence. There are probably plenty of others.

I repeat what I said in my prior post which you either didn't see or chose to ignore - But more than an indicator reading is needed to confirm a trade for me. Much more. -
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Did the research a long time ago, no edge.
 
SunTrader said:
No edge ... by itself.

Well what does, besides being Fed Chair or a casino operator not named Trumpie.
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You starting to sound like a snake oil salesman (not saying that you are) when comfronted with evidence the next step is to obfuscate and always without evidence.

Again, no edge.
 
FreakofNature said:
I misworded my post, sorry for that, I meant that those that claim edge cannot provide evidence. Did the work years ago, indicators are useless.
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I understand you found .... that you had no edge using indicators.

Must be a PHD available from Ivy League University or a book deal maybe called A Random Indicator Walk Down Wall Street or something.

Anyway I gave my 2 cents, you gave yours. Let the OP decide.
 
panganp said:
Divergences are not indicators per se.

Divergences can be observed across assets or between an asset's price and an indicator.

Lets focus on the latter, as it seems that that is what you have in mind. And lets think of divergences between price and MACD to keep things specific and thus simple.

A hidden divergence is a pullback entry of sorts. Not useful in my experience.

A regular divergence is a measure of momentum not going along with price. Not useful for me, but I've worked with truly outstanding traders that trade mostly divergences. They would explain their success with the use of divergences, while I would say their edge lies somewhere else (tape reading, trade management, etc) and they are not aware of it. Now, for those who are into fading (i.e. going against the trend), waiting for a regular divergence can be helpful as it forces patience into the trader, and makes the trader only fade once the trend's momentum slowed down.

Just realized this post is under trading software section ... coding divergences is difficult and imperfect .... I would run away from any divergence indicators.

Hope that helps. Cheers.
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thanks!
 
Buy1Sell2 said:
The ohly edge available to the retail trader is risk management.--There is no other edge--
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That being said, divergences are extremely useful in entry and exit discovery. What I have found is that when someone says that they don't work, they likely just haven't had success with identifying the proper ones.
 
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