Emini divergence journal

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Seems that the opening trade might have been a good place to exercise discretion and avoid entry. That is, Friday was a trend-day down, in the spirit of that (possibly continuing) don't take a trade until the trend is "broken", either by touching the other side of the Keltner or, at least, waiting for ADX to go below 30.
 
Quote from Magna:

Seems that the opening trade might have been a good place to exercise discretion and avoid entry. That is, Friday was a trend-day down, in the spirit of that (possibly continuing) don't take a trade until the trend is "broken", either by touching the other side of the Keltner or, at least, waiting for ADX to go below 30.
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Would there have been a trade in the NQ at the time, using the ND in the same way as the SP?
 
Quote from dbphoenix:

Would there have been a trade in the NQ at the time, using the ND in the same way as the SP?
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Good question. I rarely look at the ND but just threw it up on the screen, seems like the same situation would apply (although divergence wasn't as pronounced). That is, a continually trending down day on Friday, ADX never dipping below 30 (although it came close, far closer than it did on the SP), and price never making it to the Keltner center line (much less to the other side of the channel). So, again, it would seem when coming off of strong trending days that discretion might be the better part of valor.
 

I ask because there is value in taking trades only if they are confirmed by the other index. Adding this may seem like an unnecessary layer of complexity, but if one is using 5m charts, there's plenty of time to assess what's going on.

Might be something somebody wants to review. Or maybe not.
 
Here is a filter that may keep you from trading a counter trend system like a divergence method in a trending environment.

Look at the ADX 14 on a daily chart and avoid trading countertrend when the adx in in the middle of +DI and -DI

NO PM stated that This past april was his worst month. Look at the daily chart and you will see that on april 14 the adx entered the middle of the +- dI' S. The S&P had entered a trending environment.

Just something to consider...

Nick
 
On Tradestation, would that be the ADX overlayed on the DMI?

no pm, I hope you are feeling better. I had a sick weekend too, mostly allergies I hope.
 
Mark,

If you are using TS 2000i, then its just the DMI indicator which includes the DM's and the ADX all in one. I don't know if TS7 uses the same names for the indicators.
 
Quote from WarEagle:

Mark,

If you are using TS 2000i, then its just the DMI indicator which includes the DM's and the ADX all in one. I don't know if TS7 uses the same names for the indicators.
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Thanks WarEagle, I'm using 2000i. I'll look into it now. Just updating data.

I wonder if anyone has checked if this verifies good times to trade vs. bad times?
 
This journal is becoming pretty high-toned given the interest of at least two moderators :p

But I'm wondering if the journal will become unmanageable if variations of it are discussed here. Would it make more sense to initiate at least one other thread to discuss those variations, such as the introduction of the DMI? The strategy's application to the NQ? A means of using the strategy without taking any cues from the big contracts?
 
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