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Divergence

  • #21
  • Feb 4, 2007 3:38pm Feb 4, 2007 3:38pm
On the previous post showing monthly divergence. Does that carry much weight?
  • #22
  • Feb 4, 2007 3:42pm Feb 4, 2007 3:42pm
Weekly chart shows no divergence
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  • #23
  • Feb 4, 2007 10:09pm Feb 4, 2007 10:09pm
I had success trading divergence on Aussie on daily charts,
kiss the trend
  • #24
  • Feb 4, 2007 11:20pm Feb 4, 2007 11:20pm
Quoting Bemac
Hmmm... Rather than investigating Divergence, I might suggest you research Parabolic Curve in Trading.

can you tell me where i can get this indicator?

many thx b4
  • #25
  • Feb 5, 2007 12:48am Feb 5, 2007 12:48am
Quoting dof
You can see many regular divergences in a trend. The trend is broken only once. I prefer to miss one trade (if I have nothing else strong enough).

It is for this reason exactly that in order to profit consistently from divergence alone, you really need to get a good handle on time cycle analysis.

As for hidden divergence, also called positive and negative reversals, much higher chance of probability of followthrough and timing much easier to speculate.

Just an opinion
Man who scratches ass should not bite fingernails
  • #26
  • Feb 5, 2007 12:50am Feb 5, 2007 12:50am
Quoting goodthings
Monthly Diveregence. Any comments are helpful.

If you find the dominant monthly cycle, a divergence coupled with a soon due cycle low is a very strong indication.
Man who scratches ass should not bite fingernails
  • #27
  • Feb 5, 2007 12:53am Feb 5, 2007 12:53am
Quoting Leugimp
If you find the dominant monthly cycle, a divergence coupled with a soon due cycle low is a very strong indication.
As for the weeklys and dailys, we have recently had a positive reversal(hidden divergence) that hasn't come through as of yet and is projecting a move to 2.0130 - if it did and turned there we would have divergence once more. Only thing to really do now is to examine time cycles to add more credibilty to timing of these moves.
Man who scratches ass should not bite fingernails
  • #28
  • Feb 9, 2007 3:36pm Feb 9, 2007 3:36pm
Here is my divergence trade today GBP/USD... Good only for about 30 pips since price was coming down quick today... Long trade comes at 1.9481 and goes until 1,9514 that is time the price goes from oversold to overbought on stoch and there is divergence on MACD
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  • #29
  • Feb 9, 2007 4:10pm Feb 9, 2007 4:10pm
Quoting Tiki Trader
Here is my divergence trade today GBP/USD... Good only for about 30 pips since price was coming down quick today... Long trade comes at 1.9481 and goes until 1,9514 that is time the price goes from oversold to overbought on stoch and there is divergence on MACD
This is too extreme for me, i would trade something like that even if this time was okay.
Try hard, think fast, die young
  • #30
  • Feb 9, 2007 4:52pm Feb 9, 2007 4:52pm
Nothing extreme about this... just regular everyday divergence set up... saw it almost 7 hours in advance... just followed the rules, and made the trade... in this case not good for mnay pips... but I got about what I expected...
  • #31
  • Feb 9, 2007 4:57pm Feb 9, 2007 4:57pm
Here is another chart of the same time frame...

Wouldn't you trade this ??? 95% probability retrace back to the 23 fib line.... at least 82% probability retrace back to the 38 fib line... it can't get easier than that !!! It is a high probability trade... I just had the advantage to know it was coming way in advance.
  • #32
  • Feb 9, 2007 5:04pm Feb 9, 2007 5:04pm
Not following what you mean by too extreme. Could you explain please.
Quoting dof
This is too extreme for me, i would trade something like that even if this time was okay.
  • #33
  • Feb 10, 2007 1:18pm Feb 10, 2007 1:18pm
Here's an example of with-trend reverse divergence on Cable. You need confirmation before you enter. In this case, yellow CCI crossing zero and price crossing MA.
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  • #34
  • Feb 10, 2007 1:23pm Feb 10, 2007 1:23pm
Ditto.
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  • #35
  • Feb 10, 2007 1:59pm Feb 10, 2007 1:59pm
what are your settings?

Quoting Thruline
Here's an example of with-trend reverse divergence on Cable. You need confirmation before you enter. In this case, yellow CCI crossing zero and price crossing MA.
  • #36
  • Feb 10, 2007 3:17pm Feb 10, 2007 3:17pm
Quoting goodthings
Not following what you mean by too extreme. Could you explain please.
I won't trade against a strong move, divergence or not.
Try hard, think fast, die young
  • #37
  • Feb 10, 2007 4:19pm Feb 10, 2007 4:19pm
Quoting dof
I won't trade against a strong move, divergence or not.
I don't think you're supposed to trade divergences and simply go against price. To me the point of divergences is to signal that the current move won't last much longer and I should be looking to reverse my position soon. I wait for price to confim and then enter.
  • #38
  • Feb 10, 2007 4:25pm Feb 10, 2007 4:25pm
Quoting goodthings
what are your settings?

1hr chart, 50/14 CCI, displaced MA.

When you're taking divergence against the major trend, look for price action confirmation first. If it's a triple, even if you're wrong, there's usually enough move to get out scratch or with some profit.
  • #39
  • Feb 10, 2007 4:37pm Feb 10, 2007 4:37pm
Quoting Thruline
1hr chart, 50/14 CCI, displaced MA.

When you're taking divergence against the major trend, look for price action confirmation first. If it's a triple, even if you're wrong, there's usually enough move to get out scratch or with some profit.
What do you mean by displaced MA and on the CCI are we looking at two indicator chart one for 50 and the other is 14
  • #40
  • Feb 10, 2007 5:15pm Feb 10, 2007 5:15pm
Quoting goodthings
What do you mean by displaced MA and on the CCI are we looking at two indicator chart one for 50 and the other is 14
The MA is shifted forward several periods.

The histogram is the 50 CCI and the yellow line is the 14 CCI.
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