DislikedOh, right, thanks Mike.
I am in but am keeping it tight, I do not like that pendant & its possible projection.Ignored
james16 Chart Thread
- #115,023
- Aug 6, 2012 9:40am Aug 6, 2012 9:40am
- Joined Sep 2010 | Status: Trader | 1,122 Posts
Four more of my trades have developed strongly ... 
Human
- #115,024
- Edited 10:45am Aug 6, 2012 10:07am | Edited 10:45am
I am not sure if I should look for divergences as I would like to get rid of the one indicator I use (RSI) which I only use for divergences. I am not sure what the predictive power is because trading divergences kills you if we have a trend. I am wondering whether the predictive power of divergences increases if we find a divergence in overbought/sold territory (both points of reference being below/above 30?70)? Or it doesn't make any difference?
NOTE: I do not trade divergences alone, I consider other factors as I should. I am only asking if a divergence found in overbought/sold territory is better than one that is found between 30 and 70.
Thank you,
happy summer to all of you
NOTE: I do not trade divergences alone, I consider other factors as I should. I am only asking if a divergence found in overbought/sold territory is better than one that is found between 30 and 70.
Thank you,
happy summer to all of you
- #115,026
- Aug 6, 2012 10:31am Aug 6, 2012 10:31am
- Joined Mar 2009 | Status: Hobby Trader | 4,477 Posts
I am not sure if I should look for divergences as I would like to get rid of the one indicator I use (RSI) which I only use for divergences. I am not sure what the predictive power is because trading divergences kills you if we have a trend. I am wondering whether the predictive power of divergences increases if we find a divergence in overbought/sold territory (both points of reference being below/above 30?70)? Or it doesn't make any difference?
Thank you,
happy summer to all of you
I am not sure if I should look for divergences as I would like to get rid of the one indicator I use (RSI) which I only use for divergences. I am not sure what the predictive power is because trading divergences kills you if we have a trend. I am wondering whether the predictive power of divergences increases if we find a divergence in overbought/sold territory (both points of reference being below/above 30?70)? Or it doesn't make any difference?
Thank you,
happy summer to all of you
I am not a senior but I can tell you that RSI or MACD are often used here as a factor to take a trade if it is part of an overall story and mutliple items lining up in the form of confluence. That is to say if we get good price action at a nice swing high or low, lining up at a BRN, with a PPZ, past support or resistance, moving averages, AND it happens to have divergence then we could say that there is confluence and the chances or odds of our trade turning in our favor is much higher. Using divergence alone as your primary indicator to take a trade would not be recommended here. Personally I leave the MACD indicator squished down at the bottom of my charts the same as Mike/James so that I can quickly check for divergence when I spot a possible setup or story.
Cheers,
NWO
Price is beautiful. A repetitive method is a competitive method.
- #115,029
- Aug 6, 2012 10:46am Aug 6, 2012 10:46am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Divergence occurring on any indicator is really not predictive as the indicator is a representation of what has already happened. Having said that if one sees a trend that is sputtering a MACD divergence may give some psychologic reassurance. But the trade should not occur soley based on the divergence but rather on a confluence of factors such as a nice pinbar (price action) at significant support or resistance. I dare say no indicator should necessarily cause you to enter a trade. It is probably the last and least important factor in the 2,3,4...
It's important we always understand the context of the tools we are using. Be it divergence, S/R, PA bars etc
Sometimes though i will argue that divergence alone with good PA can tell so much. BUT I think it's important people understand what divergence is rather then just seeing it on an indicator. Which then helps in understanding an entire situation
Nice post
Mike
- #115,030
- Aug 6, 2012 10:55am Aug 6, 2012 10:55am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
I believe . . .
- #115,031
- Aug 6, 2012 10:58am Aug 6, 2012 10:58am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Hey Han Solo
Great to see you back again.
I still remember with fond memories those weekends with, where is price going where did it go sessions.
Hope all is well with you and your family.
Maybe we could resume those sessions...just to bring back the amazing aroma of the core basics into the lime light.
g.
I believe . . .
- #115,036
- Aug 6, 2012 12:59pm Aug 6, 2012 12:59pm
- Joined Feb 2009 | Status: kiki soso largyalo | 2,243 Posts
meine augen sind die sterne
- #115,037
- Edited 1:37pm Aug 6, 2012 1:14pm | Edited 1:37pm
- Joined May 2010 | Status: HCR-LCS SFP | 6,026 Posts
Yup we miss the old folks!
Maybe we could resume those sessions...just to bring back the amazing aroma of the core basics into the lime light.
g.
By Popular request.
Here is J16's "Where is price going, where did it go" Quiz.
Actually J16 does it live, this is an old setup with the candles to the right of this bar removed. But, it works just the same as when J16 posts these things, the candles to the right of the bar, have yet to be formed.
Copy this chart and draw a horizontal line where you think price made it to after this bar and explain your logic.
Give it a try folks. You can not lose anything, and have Everything to gain.
Weekly time frame chart with a bullish PB.
Ahhh, this brings back that atmosphere.
Edit: To copy the chart just double click it to expand it, then right click it and save it to your desktop.
Then, edit it with your horizontal line and post your reasons for price going where you think it did.
