Emini divergence journal

[Magna]

Quote from no_pm_please:

Now that ADX is above 30 we need to see the price confirm it's divergence with volume. In this case the price needs to cross above 984.70 before the original trigger would be setup.

When you get a chance will you explain a few things about the above. What did you mean "see the price confirm it's divergence with volume" since you had never mentioned volume as a condition or parameter. Also, why did you say "price needs to cross above 984.70 before the original trigger would be setup." Seems that the only condition needed, once ADX reaches its level and you've decided there is sufficient divergence, is that price stops making new highs. Thanks.

[LATER EDIT: my oversight re: volume, for some reason I thought you were introducing price volume at this point for confirmation, not determining "volume divergence" with the oscillator as prior.]

 

[no_pm_please]

Quote from MarkB:

Hmm, that divergence didn't show up the same way for me. Chaikin plotted differently. I haven't had problems with seeing the signals before. What's wrong here?

What quote vendor are you using? Your quotes don't look anything like mine. On your 905 bar you have it as a inside bar while I've got it touching the high.

 

[hit_n_run]

Quote from richsan:

NO_PM
According to my understanding of your system all the criteria were met for a short triggered this morning at 10:35 at approx. 983.50 . Is this correct and did you enter this trade?

agree, that's what I saw to. I think, nopmplease didnt take the trade, because he thought, that today will be an uptrending day.

it was at least 7 points , that he missed here, imo.

thanks to nopmplease for sharing.

 

[market_man76]

Quote from rickty:


(For what it's worth, both the 6 and 14 period CCI (as Woodie uses) were showing major divergences when the HOD was put in at the 10:35 EST bar).

Richard

Aside from that, ES hit Resistance 2 from Pivot formula which is also the weekly high. S&P cash hit weekly high. Dow hit 2nd upper stop. SOX hit 50 Day EMA, NQ was at 50 Day EMA and previous high area. It all lined up at that time for the short reversal. Nevermind divergence on an indicator.

BTW. Nice thread you got going.

 

[no_pm_please]

Quote from richsan:

NO_PM
According to my understanding of your system all the criteria were met for a short triggered this morning at 10:40 at approx. 983.50 . Is this correct and did you enter this trade?

I missed the trade . I like to see clear signals. In this case I wanted to see a new high (with volume divergence) after the ADX went above 30. It didn't happen and the 935 bar was the first bar to not set a new high. The trade didn't give a retest and got down to the exit point at the 1015 bar. I calculated the SP open on the 945 bar at 983.30 and the exitpoint at 977.00, ao a missed opportunity of about 6.25 points.

 

[MarkB]

I'm using IQFeed. Looks like there's a significant difference in our data, at least today. This is really annoying. I'll have to find a way to confirm accuracy one way or the other.

 

[richsan]

Quote from no_pm_please:



I missed the trade . I like to see clear signals. In this case I wanted to see a new high (with volume divergence) after the ADX went above 30. It didn't happen and the 935 bar was the first bar to not set a new high. The trade didn't give a retest and got down to the exit point at the 1015 bar. I calculated the SP open on the 940 bar at 983.30 and the exitpoint at 977.00, ao a missed opportunity of about 6.25 points.

I'm using TS 7 and on my charts there was indeed both a new high AND vol divergence after the ADX went above 30.

 

[no_pm_please]

Quote from Magna:

When you get a chance will you explain a few things about the above. What did you mean "see the price confirm it's divergence with volume" since you had never mentioned volume as a condition or parameter. Also, why did you say "price needs to cross above 984.70 before the original trigger would be setup." Seems that the only condition needed, once ADX reaches its level and you've decided there is sufficient divergence, is that price stops making new highs. Thanks.

I like to see the trade progress in a order. The first is the ADX crossing above 30. Once that happens I look for a new high or low in the trend with a volume divergence to indicate continued momentum. Then I look for the first down bar to give the entry signal. It didn't happen this trade and since I was looking to only enter on a retest anyway, I missed the trade completely. In the past I've been burned by strong trends when I didn't wait for the momentum to top, so that's why I want a new high AFTER the ADX crosses 30. Probably too much thinking for my own good.

 

[no_pm_please]

Quote from richsan:



I'm using TS 7 and on my charts there was indeed both a new high AND vol divergence after the ADX went above 30.

I guess our datafeeds aren't lining up today. I showed the SP high as 984.70 at the 935 bar with the ADX at 29.01. Then on the 940 bar I have the ADX crossing above 30 and the price not setting a new high. I guess they'll be different opportunities for each person depending on their datafeed. Hope you made some money.

 

[richsan]

Quote from no_pm_please:



I guess our datafeeds aren't lining up today. I showed the SP high as 984.70 at the 935 bar with the ADX at 29.01. Then on the 940 bar I have the ADX crossing above 30 and the price not setting a new high. I guess they'll be different opportunities for each person depending on their datafeed. Hope you made some money.

Ahh. The difference is that I was looking solely at ES not SP.