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Thread: Is divergence trading an effective approach?

  1. #61
    Quote Originally Posted by TranceTrader ;
    Divergence with its fancy name is an instance of when your index fails, nothing else.
    Funny self-contradicting argument. You state that divergence is awful because it seems when the indicators neglect. If you were right, divergence are great since it would indicate when to distrust the indi. Unfortunately divergence steps something else.

    I really like it when folks criticize tools they do not understand how they work, dependent on no tangible facts.
    Almost as amusing as people who make extensive use of tools they do not understand how they work, dependent on no tangible facts.

    Quote Originally Posted by Wolf_Wicked ;
    quote Really I beg to differ. . It's possible to use divergence from your price chart without signs....
    If you can quantify divergence with the chart only you knew (maybe unconsciously) that divergence steps an acceleration and looks
    once the velocity and the acceleration have opposite sign. 1

    Still no one answered https://www.cliqforex.com/trading-sy...cktrading.html

  2. #62
    Quote Originally Posted by PipMeUp ;
    If you can measure divergence with the graph only you knew (perhaps unconsciously) that divergence measures an acceleration and looks when the pace and the acceleration have opposite sign. 1 Still nobody replied https://www.cliqforex.com/general-fo...mber-10th.html
    Precisely, it's a fantastic psychological event, if you are at the peak of a fad and the highs are coming in poorer, then a lot of people will be inclined to start talking profits. . If you are into bubbles then this can trigger the rush for the door. .

    But I am more interested in Trance Traders debate from this perspective. . In other words I guess in his view divergence isn't anything more than a collapse of momentum? Or the fad itself? I am not sure, would like to here his take on it. . really. . Not having a go in the Trance Trader, I am very interested to here your thoughts.

  3. #63
    Quote Originally Posted by TranceTrader ;
    I am bemused that so many people think that this sh*t works. Divergence with its fancy title is a good example of when your indicator fails, nothing else.
    //--

    divergence can be recklessly implemented, such as when we base our transactions on our personal view of the direction that clearly diverges from the markets view....

    But it may be suitably implemented.... Such as when the short-term trend, let's say the 12 ma, diverges from the longer term trend, let's say the 26 ma.... There we first have a divergence of the periods and/or timeframes.... And when they converge, we've got a sign.... Commonly known as the macd....

    Set the standard macd ea on the 30 minute gbpusd , with 50 pip profittarget along with stoploss, .... I would be surprised if it did not double the account within a few years....

    Hendrick put second from the initial metaquotes contest using an ea that was in part based on divergence....

    And of course the divergence theory can be applied to almost any indicator or hint.... Indication meaning price action type events like pivots, support/resistance and these....

    //-----

    is divergence the best method for trading.... Well I wouldn't go so far as to say that.... But properly employed, it can double an account proved a lot of do...h

  4. #64
    Quote Originally Posted by Rap Skallion ;
    I fault myself for missing among them: I had a banner (260 pips)pictureimageimageimageimageimagepicture I'll attempt to do better in the future.
    I LIKE. . Very Good graphs

  5. #65
    Because trends are made up of a collection of price swings, momentum plays an integral role is assessing trend strength. As such, it is important that you know when a trend is slowing down. Less momentum doesn't always result in a change, but it does signal that something is shifting, and that the tendency may consolidate or reverse.

    Price momentum refers to the direction and magnitude of price. Comparing price swings assists traders gain insight into price momentum. Here, we'll have a peek at how to evaluate price momentum and show you what divergence in momentum will let you know about the management of a trend.

  6. #66
    You state that divergence is awful because it appears whenever the indicators neglect

    Wrong. I don't say that. I state (or composed for the literate people) that divergence is merely an illustration of whatever indicator you are using neglecting (or lagging).

    Your conjecture is assuming that traditional indicators deliver reliable entry signs (or function because you put it),... which they do not.

    Quote Originally Posted by PipMeUp ;
    quote Funny self-contradicting argument. You state that divergence is awful because it appears whenever the indicators neglect. In the event that you were right, divergence would be great as it would indicate if to emphasise the indi. Unfortunately divergence measures something else. I really like it when folks criticize tools they do not know how they work, based on no tangible facts. Almost as funny as people who make extensive usage of resources they do not know how they work, based on no tangible facts. quote If it's possible to quantify divergence with the chart only you understood...

  7. #67
    Not sure what you are referring to here, you may have to bring some context? I'm referring to the traditional delusional technical divergence, as are most in the thread from what I can see.

    If you are making up your own version of divergence... then I will assume that is also bullshit.

    Quote Originally Posted by Wolf_Wicked ;
    quote Can you explain to me your argument against this perspective...? Divergence without the indicator. . 1 if you can. . Cunt in case you C* not

  8. #68
    Quote Originally Posted by Gspajon ;
    quote As I mentioned in my previous article it is very hard to understand or even suspect cost fatigue from a technical perspective. The ideal is to be relegated to the purchase board but that is not available either....and I suspect that is what HFT accomplishes its super computers. I use volume candles. Candles that show the equivalent number of contracts traded per pub. Even though this is not ideal it does help. The concept being that if a volume pub is either bullish or bearish (given the same volume per pub), the order stream would also be bullish...
    Eminiwatch does some very nice quantity divergence and exhaustion indicators for futures markets

  9. #69
    Quote Originally Posted by TranceTrader ;
    You say that divergence is awful since it seems when the indicators neglect Wrong. I don't say that. I say (or composed for the literate people) that divergence is just an example of whatever indicator you're using failing (or lagging). Your conjecture is assuming that traditional indicators provide reliable entry signs (or work because you put it),... which they don't. quote
    Lagging and failling are completely unrelated things. BTW the lag is not bad in itself. The lag of an SMA for example is the thing that generates the lively S/R effect.

    As you wrote that divergence is an example of indicator failing, it usually means that divergence could someday avoid a loss due to a false signal. Therefore it would be useful by simply avoiding a fraction of these reductions. (I don't think this is accurate anyway)

    And it's not a conjecture (for its literate people). It's a deduction. I didn't presume that traditional indicators provide any reliable entry signs. I start from the concept that a lot of people do and that sometimes they indeed do match having a entry signal. If, when they don't, divergence could avoid the entry, it might then be useful just for that. That is a contradiction of it being useless sh*t.

    Since indis are neighborhood estimators they can not distinguish a local extrema from an international extrema. Thats' why I never considered an indicator to be a signal supplier. An indi is only here to asses a sheet of the estimation of the market state.

    An indi does not provide you a YES/NO. It gives you a NO/MAYBE. The MAYBE may or may not activate a trading decision. This decision will be taken based on additional indis, such as a higher TF or the principles (that are fallible too).

  10. #70
    You're conveniently altering context to suit your incoherent nonsense. For the interest of you not writing another load of horse shit, lets just agree to disagree.

  11. #71
    Quote Originally Posted by PipMeUp ;
    Since indis are neighborhood estimators they can't distinguish a local extrema out of a global extrema. Thats' why I considered an indicator to be a sign supplier. An indi is only here in order to asses a sheet of the estimation of the market condition. An indi usually does not give you a YES/NO. It gives you a NO/MAYBE. The MAYBE may or may not trigger a trading decision. This decision will be taken based on additional indis, such as a greater TF or the fundamentals (which are fallible too).
    Hello, thanks for your posts in this thread; I have found them to be quite enlightening. I'm not quite certain what you are trying to say about indicators though. Do you mind describing what you mean by this (particularly the bit in bold).

  12. #72
    Quote Originally Posted by PipMeUp ;
    In case you're able to quantify divergence with the chart only you understood (maybe unconsciously) that divergence measures an acceleration and appears when the speed and the acceleration have opposite sign.
    Can you also mind explaining this? Exactly what do you mean when you say that a divergence appears when 'the speed and the acceleration have opposite sign'?
    Thanks

  13. #73
    Quote Originally Posted by Hayseed ;
    and of course the divergence concept could be applied to virtually any indicator or hint.... Indication meaning cost action type events such as pivots, support/resistance and such....
    My comprehension of divergences is clearly far more restricted than the comprehension of most posters in this thread. I've only ever understood it to mean divergence between the peaks and troughs of cost and an oscillator (this type of thing: http://www.babypips.com/school/high-...eat-sheet.html). And so, I'm finding it hard to understand what you mean when you say that divergence concept could be applied to 'cost action type events such as pivots and support/resistance'. In scenarios like these, what is there to diverge?

    Thanks for your help

  14. #74
    @Rap Skallion how Can u use moving average to trade divergence

  15. #75
    Divergence was observed at primitive H4 chart.crude cost did not reverse trend..but spanned the median only of pitch fork..and again bounced back from 135% retracement level..and has touched median lineup again. . .now what is another fad for crude..any reply plzz.

  16. #76
    To your pinwall: Types of Divergence indicators



  17. #77
    Set and forget trade using divergence....

  18. #78
    I've been trading using divergance for nearly a year . Divergence if used with price action , resistance and support and keeping trend in focus yield great outcomes . Like every trading strategy it takes time to master . Divergence is highly successful on 4 hr and daily time frames . It is not a tool to use in lesser time frame due to market noise .

  19. #79
    search for divergence in double tops and double bottoms . You'd be astounded by the results

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