Nasty divergence in NQ

Quote from jrs3:

One more thing, perhaps you might post some charts with your analysis.
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I'm afraid we're not communicating, which is too bad. There's nothing to analyze.

There are two general types of indicators: those that oscillate, such as the MACD histogram, RSI, stochastics, and those that are "trend-following", such as the ADX and MACD. An oscillating indicator is relatively useless if you're trending. Plot, for example, a stochastic against today's trending price. On the other hand, a trending indicator is relatively useless if there's no trend.

This is basic stuff. If you're not willing to accept it, then there's not much to say.
 
By the way, if you've figured out a way to trade trends with an oscillator, consistently and profitably, congratulations.
 
Gee your real smart did you learn all that from technical analysis from A-Z. Boy I bet you rake in the dough since your so schooled in technical analysis.

Learning more and more about the markets only to avoid pain will only compound ones problems because the more one learns, the more he will naturally expect from the markets, making it all the more painful when the markets don't do their part.

Focus on the NOW moment opportunity flow.

CIAO!
 
No, not particularly smart. But I've done my homework.

I assume you went short at your "divergence" and held on while the trade went 10pts against you? That's a risk profile I'd rather not become involved with.

As long as you're having fun, that's all that matters :cool:
 
Quote from jrs3:

Gee your real smart did you learn all that from technical analysis from A-Z. Boy I bet you rake in the dough since your so schooled in technical analysis.
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You're killing me with your typing.

See the difference between you're and your? Maybe you need "Grammar from A-Z".

dbphoenix was being helpful. Try not to be so rude in return.
 
I was short @1535 covered @1542 for $150.00 loss. I take every signal from my trading system from 8:30 till 3:00cst. Today netted $440.00 profit trading 1 car.

This is silly posting on these forums, I am out of here.
 

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Quote from dbphoenix:


There are two general types of indicators: those that oscillate, such as the MACD histogram, RSI, stochastics, and those that are "trend-following", such as the ADX and MACD. An oscillating indicator is relatively useless if you're trending. Plot, for example, a stochastic against today's trending price. On the other hand, a trending indicator is relatively useless if there's no trend.
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I agree with DB on the indicators. However, thats still not enough. You have to look at your 5 minute trade in the context of the trend (you were trying for a counter-trend play on the strongest index in a general uptrend) and in the context of larger timeframe patterns.

Unless you are just going for a couple of points, picking a 5 minute pattern out of context is probably less than a 50-50% proposition.
 
For MACD Histogram, look at its sign;
For MACD itself, look at its direction.

Thus today's NQ started to develop divergence from 10:30 for the indicator seting you used.
 
Quote from Tea:

I agree with DB on the indicators. However, thats still not enough. You have to look at your 5 minute trade in the context of the trend (you were trying for a counter-trend play on the strongest index in a general uptrend) and in the context of larger timeframe patterns.

Unless you are just going for a couple of points, picking a 5 minute pattern out of context is probably less than a 50-50% proposition.
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I agree. But since he didn't understand the difference between trend and oscillation, much less which indicator to use where, I didn't see any point in going further. Why waste the time if somebody doesn't want to learn? What he does with his money is really none of my business.
 
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