Nasty divergence in NQ

[formikatrading]

In my experience are not as reliable as divergences on the indicator itself -- which still isn't a guarantee.

 

[dbphoenix]

Quote from formikatrading:

In my experience are not as reliable as divergences on the indicator itself -- which still isn't a guarantee.

Depends on what you do with them. As I said, they measure different things.

 

[jrs3]

Divergence confirmed

 

[formikatrading]

I don't disagree.

Quote from dbphoenix:

Depends on what you do with them. As I said, they measure different things.

 

[dbphoenix]

Quote from jrs3:

Divergence confirmed

If you think so, I'm afraid that your use of the histogram is going to get you into trouble eventually.

I suggest you learn the construction of whatever indicator you use.

 

[ddog]

Quote from jrs3:

5 Min chart NQ

I think your chart shows absolutely nothing. In the context of one of the strongest bull trends in quite some time, trying to pick a top based on some indicator divergence, especially on something as short as a 5 minute chart in my opinion in foolish.

 

[jrs3]

I reckon your right it means nothing.

 

[dbphoenix]

Quote from jrs3:

I reckon your right it means nothing.

You're drawing the wrong conclusions. Note that after your "divergence", the price rallied and resumed the uptrend.

Again, learn how the indicators you use are constructed. If you're going to use the histogram in this case, you may as well take your signals off a stochastic.

 

[jrs3]

Hey your right I can always learn more. Have a nice weekend.

 

[jrs3]

One more thing, perhaps you might post some charts with your analysis.