Hello
I usually use divergence strategy
but I want discuss about it
abuot exact entry , stop and exit
I usually use divergence strategy
but I want discuss about it
abuot exact entry , stop and exit
- #6
- Sep 5, 2008 8:57am Sep 5, 2008 8:57am
- Joined Apr 2005 | Status: Dopey Bastard | 1,568 Posts
This gets my vote as the funniest thread of the week. 
- #7
- Sep 5, 2008 9:55am Sep 5, 2008 9:55am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
This gets my vote as the funniest thread of the week.
Threads about divergences get started every second month on this forum. This have been said before, but I'll mention it again; Trading divergence alone isn't good enough. Since trading is all about probabilities, your job should be to find scenarios stacking you probabilities up. I've used this chart before but thought it could fit here too.
Although this example is on lower TF, I thought it would be appropriate since most people in here look at 4h chart and below. Notice if you have traded divergence alone, you would have 3 negative trades. Most likely you would have been so frustrated you'd skip the final sigal.
Trading divergence along with (at least) 1-2 other TA (price-pattern, break of TL's etc), does give an edge, with some practice.
A good surgeon doesn't hunt for the perfect scalpel. He just know how to handle basic equipment together.
Measure twice, cut once
