RSI? Stoch? MACD?
What tips do the experts have!
What tips do the experts have!
Which system is the best? Or which combinations of systems work the best? 43 replies
Best divergence indicator? 31 replies
Divergence and hidden Divergence 116 replies
The Best of The Best Trade Follow up RSI 6 Divergence 7 replies
If it works, it works... 3 replies
DislikedThe problem is. Divergence is allways easy to spot looking back.
But when to you know that divergence is complete?Ignored
DislikedNiandra, all indicators are derived from price. Oscillators measure rate of change of price, and decelerations in price show up as oscillator divergences, simply because of the way the oscillators are calculated.
In the attached chart, both MACD(12,16,9) histogram and RSI(14) show divergence. Why? Price is decelerating (the slope of the yellow lines is getting less steep). Or, in other words, the distance between successive lows is decreasing.
The problem with indicators: it's not only about which indicator to use, but how to calibrate them. Different...Ignored
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