If you are good at something, never do it for free--Joker
The biggest lie about divergence in trading
- #41
- May 19, 2016 9:11am May 19, 2016 9:11am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
- #43
- May 19, 2016 9:13am May 19, 2016 9:13am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
If you are good at something, never do it for free--Joker
- #45
- May 19, 2016 9:40am May 19, 2016 9:40am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
If you are good at something, never do it for free--Joker
- #46
- May 19, 2016 9:40am May 19, 2016 9:40am
- Joined May 2012 | Status: ... | 1,925 Posts
All the way up in price, and yet flat RSI tops. Wondering whether there's a bear in the house. Can be interesting to watch...
- #48
- May 19, 2016 11:13am May 19, 2016 11:13am
{quote} My apologies. I did not know seahorse likes to troll threads. Thanks for the info!
And look, theres a big "Divergence" between troll and reality, my friend
All the best for you $$
- #49
- May 19, 2016 11:47am May 19, 2016 11:47am
- | Membership Revoked | Joined Sep 2015 | 1,961 Posts
The biggest lie in trading is, "Divergence gives the best signals" we have all read it in countless of books about trading. I have made several EAs trading both classical and hidden divergence, the results have been very poor, none of them gives a good signal. opinions? maybe it worked 30 years ago when some authors wrote those books? but I really doubt that, did anyone here have a good result with divergence? would be interested to hear your thoughts about it.
{quote} todays tip diverenge is fundamental tool,not technical
- #50
- May 19, 2016 12:25pm May 19, 2016 12:25pm
- Joined Oct 2010 | Status: Trader | 5,442 Posts
There's a simple process for dealing with a pointless troll poster like seahorse...you go to his profile page and you click the ignore button...job done, and I did it earlier.
Now back to what we are all here for. I maintain that diversion can be a great indicator for capturing trades. Here's a Dax trade i had on the 13th, a trade I would not have taken without the diversion. The first one is very shallow, and for me not enough to trade off. The second one is clear diversion and will have been spotted by many other retail and professional traders, hence the strong reaction northbound.
Sometimes you know, opportunities seem too good to be true, we wait, not sure what the price is going to do, we still wait and off it goes, and we do nothing because it is easier to do nothing, there's no risk, and we sit there as another trading opportunity goes off without us. You've got to fight this apathy, I had to, and I know that I'm no different to the majority of traders out there. When you see a signal like this, and the candles are also leaving some nice in this case, bullish stalks, just go for it, pull the trigger. Yes you'll get some wrong, but if you show your balls on every single opportunity that you recognize as being one ( apologies to any ladies out there), you'll be way ahead provided you know what you're doing.
Just trying to pass on a few lessons I've learnt along the way
Now back to what we are all here for. I maintain that diversion can be a great indicator for capturing trades. Here's a Dax trade i had on the 13th, a trade I would not have taken without the diversion. The first one is very shallow, and for me not enough to trade off. The second one is clear diversion and will have been spotted by many other retail and professional traders, hence the strong reaction northbound.
Sometimes you know, opportunities seem too good to be true, we wait, not sure what the price is going to do, we still wait and off it goes, and we do nothing because it is easier to do nothing, there's no risk, and we sit there as another trading opportunity goes off without us. You've got to fight this apathy, I had to, and I know that I'm no different to the majority of traders out there. When you see a signal like this, and the candles are also leaving some nice in this case, bullish stalks, just go for it, pull the trigger. Yes you'll get some wrong, but if you show your balls on every single opportunity that you recognize as being one ( apologies to any ladies out there), you'll be way ahead provided you know what you're doing.
Just trying to pass on a few lessons I've learnt along the way
- #53
- Edited 1:09pm May 19, 2016 12:55pm | Edited 1:09pm
{quote} I never said that, but it is one of the indicators which, when combined with others, can prompt traders to act a certain way, and that is what makes the price move.
Aahh, so entertaining here, close to your thread "the big secret to trading success" (like the way you teach)
If it were possible, the dogmatists would shoot each other with lasers through the screens. Oh boy.
But the good thing about the useless fighting is, we get the point about "the big secret to trading success" and this thread here all in one !!!
The big secret to trading success (and everything else you can imagine) is to able to see things
REALY objective and not like our megaego tells us.
And of course "the biggest lie about divergence in trading" is not a even a lie.
Bevore you guys load your laserguns.... I am not here to say I am right, you`re not, ok?
Objective view on divergence:
It is a disagreement between the price and a oscillating indicator.
A location of exhaustion in the market and spotting a higher probability of a retracement.
If price will retrace or not is depending on many other things.
So, if a trader is jumping on every divergence he sees in a indicator window, is not objective, it would be
subjective and the probability to lose is higher than to win.
It is all about the direction of momentum and high probability to win of the setups.
It is NOT about your opinion or a feeling in the stomach.
As I am writing this, I know that I will get burned again and again while trading, because I am aware of
our weak nature.
Otherwise FF can be closed today. No threads needed no thousands of indicators needed.
But we can be sure FF will stay for ever.
So please work on your objectivity and we get a constructive thread with facts where and when
divergence works and where and when not. Easy, isn`t it ....
- #55
- May 19, 2016 1:05pm May 19, 2016 1:05pm
- Joined Dec 2015 | Status: Trader | 7,803 Posts
[quote=seahorse;8935323]{quote} I see you are in the business at least since Oct 2010, about 6 years. You already should know what moves the price. But I will give you an "eye-opening" moment and for your friend Copernicus also. And dont need to thank me So if divergences dont move the price = BS I wish you all the luck $$ PS: And I don't believe that you have fantastic results with divergences
I don't see how you can say he is wrong and that someone else isn't successful with something you may not understand...
So if divergences dont move the price = BS I wish you all the luck $$ PS: And I don't believe that you have fantastic results with divergencesI don't see how you can say he is wrong and that someone else isn't successful with something you may not understand...
Here is example of a high probabilty situation, works in all timeframes.
In this case with 2 line macd, but other oscillators work as well.
Point about this picture is that the second divergence has a higher probability than a single one.
"Triple" because three lows are involved.
(Not my picture and text)
In this case with 2 line macd, but other oscillators work as well.
Point about this picture is that the second divergence has a higher probability than a single one.
"Triple" because three lows are involved.
(Not my picture and text)
Sometimes you know, opportunities seem too good to be true, we wait, not sure what the price is going to do, we still wait and off it goes, and we do nothing because it is easier to do nothing, there's no risk, and we sit there as another trading opportunity goes off without us. You've got to fight this apathy, I had to, and I know that I'm no different to the majority of traders out there. When you see a signal like this, and the candles are also leaving some nice in this case, bullish stalks, just go for it, pull the trigger. Yes you'll get some...
Most market participants are pussies, most won't admit it.
If most market participants don't get particular good results that's just one of the reasons.
So we have to do the hard thing, that's what separates the real performers from the wannabees.
That's why trading is hard because almost every day we have to do the hard thing. Ever worked in insurance/law/construction/almost any other job? Did you have to do the hard thing almost every day or just once in a while preferring to take the easy route? That's fine in most of those jobs because it doesn't leave money on the table but it's not fine in successful trading. In fact it's the wrong thing to do.
Like Cat (he's no pussy
) says it's not normal to do the hard thing, 99% have to fight it, 99% people have to fight the apathy myself included.DO THE HARD THING OR YOU'LL HAVE NO CHANCE OF SUCCESS.
Road To Wisdom? To err and err and err again, but less and less and less...
- #59
- May 19, 2016 3:21pm May 19, 2016 3:21pm
- Joined May 2012 | Status: ... | 1,925 Posts
All the way up in price, and yet flat RSI tops. Wondering whether there's a bear in the house. Can be interesting to watch... {image}
Divergence indication (which is actually something I don't use) is just like any other indicator insofar as it can be handy if used in conjunction with price-action itself. But for me, the overriding king is, price-action. Over and out
