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(ask) real divergence or fake one

  • Post #1
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  • First Post: Edited at 8:24am Sep 9, 2010 8:05am | Edited at 8:24am
as you know divergence is true reversal (not lagging system) but day by day it seems more difficult. i'm ussualy use macd (12,26,0) to confirm the divergence but still there's much fake that cause lose.

i want to ask to all of you that use divergence, how to recognize that the divergence is the real one but don't make you left by the trend ???

http://%3Ca%20href=http://upload.kap...1b139e87-t.gifhttp://upload.kapanlagi.com/images/t...1b139e87-t.gif
1) Nothing is 100%.
2) Count on nothing working properly when the volume is whack.
Quoting dashboard
n.b : if what i'm explain not clear yet, i will post the chart that so many fake divergence if just confirm by the macd
yes. pls. post the charts :0
cheers
The price has to have a reason to change direction. MACD is just showing divergence from moving averages, so a trend can simply slow down, which would cause the MACD to reverse, but then the trend can resume. This technique of MACD-Price divergence works at levels of support and resistance, and a few other circumstances.

In the chart you posted, your 'confirmed sell' is at support - the place where you should be thinking about buying.

Rob
Quoting Rob Mondave
The price has to have a reason to change direction. MACD is just showing divergence from moving averages, so a trend can simply slow down, which would cause the MACD to reverse, but then the trend can resume. This technique of MACD-Price divergence works at levels of support and resistance, and a few other circumstances.

In the chart you posted, your 'confirmed sell' is at support - the place where you should be thinking about buying.

Rob
will you explain what condition of divergence that can make a change of trend ?? thanks before
  • Post #6
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  • Last Post: Feb 17, 2012 6:06am Feb 17, 2012 6:06am
http://dl.dropbox.com/u/12634873/for...ing/feb-17.jpg
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