Is anyone using Divergence successfully?

MarketAddict

MarketAddict

Is anyone using divergence successfully? RSI divergence, MACD div etc? Just curious because I'm backtesting divergence strategies and so far I like what I see.
 
I'm sure many here would be curious to hear how you are "backtesting" this typically discretionary strategy. When I say backtesting, I mean the generally accepted notion that backtesting involves mechanical (computerized) testing over a historical data-set.
 
welcome to the grail thread on divergence et al.

3 decades of real time diverge trading.

s


http://www.elitetrader.com/vb/showthread.php?threadid=223293

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Quote from shopster:

one leg setup in the trend channel to a full 5.76 full pull

120 ticks

notice the zero lag cross over to the positive side on the second leg.

divergence is the key

then fib out the bottom setup and watch it run to the top of the auto channel and the 5.76 exit door

a second trade , short, was done at the top .

again diverge is on the second leg in the macd and the rad t3 ssto in the bottom window.

s
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Quote from TD80:

I'm sure many here would be curious to hear how you are "backtesting" this typically discretionary strategy. When I say backtesting, I mean the generally accepted notion that backtesting involves mechanical (computerized) testing over a historical data-set.
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I'm backtesting manually. Meaning my eyes are looking at the chart and I'm manually drawing trendlines on the chart on each bactesting day.
 
Quote from MarketAddict:

I'm backtesting manually. Meaning my eyes are looking at the chart and I'm manually drawing trendlines on the chart on each bactesting day.
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You keeping statistical results and what type of stats you keeping ?

Also, what type of divergence you've been manually backtesting beyond RSI and MACD ?

In addition, what trading instruments you're manually backtesting divergence ?
 
Quote from shopster:

get your head wrapped around zero lag diverge and the cross over.

s

:cool:
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A divergence means the price and indicator are diverging. What you showed isn't a divergence.
 
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