Thank you for your post. I did attempt trading intraday divergences in e-mini S&P500 for a while, I had various TF charts opened and found that the most reliable signal is the one that occurs on 1min, followed by 2 or 3 min and taking the 5 min set-up providing RSI on 1min TF is not about to reverse in the opposite direction. No matter how safe that pattern was for me, I have concluded that intraday, there is a better way of making consistent ROI, I mainly look at intraday divergences on 1 min TF to see potential exits. Also, in a trend day, divergences do not often offer positive outcomes, unless, trading calls off a pullback in the original direction of the trend.
Divergences
- Thread starter romik
- Start date
Thank you for your post. I did attempt trading intraday divergences in e-mini S&P500 for a while, I had various TF charts opened and found that the most reliable signal is the one that occurs on 1min, followed by 2 or 3 min and taking the 5 min set-up providing RSI on 1min TF is not about to reverse in the opposite direction. No matter how safe that pattern was for me, I have concluded that intraday, there is a better way of making consistent ROI, I mainly look at intraday divergences on 1 min TF to see potential exits. Also, in a trend day, divergences do not often offer positive outcomes, unless, trading calls off a pullback in the original direction of the trend.
I still think that divergences intraday is a tough cookie to crack, unless, one of the possibilities, one starts small size and averages in, just like you do in your positional B1S2. Don't get me wrong, I did average a positive net intraday using divergences, but my primary system's average is higher, hence I decided to call it a day on intraday divergence based entries and concentrate on longer time frames. Also, as I mentioned in one of the posts, monitoring intraday divergences on various TFs is very time consuming task, it literally wore me out one day.
OK, I can see the chart now. There is a triple BLD in MACD/HIST and by my rules regarding PTs PT1 would have been 2.7-2.8 (conservative), if you throw in Bollingers you might aim for the higher level, I tend to go fo PTs just below the higher level and not wait for a sharp reversal, which does occur at times. Nice call BTW, well done!
Short ABI (NYSE) Applera Corp - Applied Biosystems Group
Current: $30.84
PT1: $28.00
PT2: $25.00
PT3: N/A
Average down: N/A
Stop: $33.60
BRD in MACD/HIST/RSI/STOCH on a weekly chart attached.
http://finance.yahoo.com/q?s=ABI
Current: $30.84
PT1: $28.00
PT2: $25.00
PT3: N/A
Average down: N/A
Stop: $33.60
BRD in MACD/HIST/RSI/STOCH on a weekly chart attached.
http://finance.yahoo.com/q?s=ABI
I know that this has been said, but great journal! Really fills a need on this board
This a study, more than anything else, so if you are browsing some charts and happen to see a divergence, please feel free to post it here. As I have mentioned already, I do not have a divergence scanner, nor do I have the time to sit and browse through thousands of charts, I simply pull up S&P500 company list and pull up some charts, but if one was to do it seriously, a scanner is a must, as I am sure I missing out on some great opportunities, a perfect example being a Triple BRD in JDSU, posted by an ET member. Thanks a lot for your comments. At least this journal is pretty real, even though there are no real fills going on, therefore the only downside would be the slippage if one was to open positions at the time of them being posted here, but that's part of the reason I try to pick very liquid stocks, mainly from the S&P500, which also warrants that a 90% over night gap is an unlikely scenario.