Did U find these systems/tools useful......

[Cactus]

Oxy.....

I am little confused -where I written....."when divergance occur price have a good chance of moving up or down"

I simply written if Divergance is postive & rising go long........if it is negetive and becoming deeper negetive .......go short.....?

Is there any confusion.......

 

[Cactus]

Oxy.........it depend.

if the 2nd or third move are not larger or lower than first......in my view it doesn't mean that predective ability of divergance is nil.........it could be a consolidation phase......

my own view.

a typical zig-zag formation, where the third leg's magnitude is not significantly larger than the first". Thus, it can be predicted before hand that such and such movements will lead to (macd, macdh) divergence, rendering the predictive ability of divergence as nil.

 

[oxusmorouz]

I do think there is a bit of confusion.

I simply written if Divergance is postive & rising go long........if it is negetive and becoming deeper negetive .......go short.....?

Why?

 

[Cactus]

check the chart.

post no 43. point no 211 to 230.....and again point no 241 to 271.

if it seems zig-zag sit compleately out.

will post few chart on consolidation too........letter

I do think there is a bit of confusion.



Why?

 

[oxusmorouz]

check the chart.

post no 43. point no 211 to 230.....and again point no 241 to 271.

if it seems zig-zag sit compleately out.

will post few chart on consolidation too........letter

1 chart, or an example does not validate a theory. If there really is no real reason for choosing a particular tool and if it is done so because a few instances in the past have suggested the same (although unproven), then butter production of Bangladesh would be an excellent tool to trade the S&P, having highest correlation with it.

 

[Cactus]

1 chart, or an example does not validate a theory. .

u will definitly get some more charts here........just wait.....

then butter production of Bangladesh would be an excellent tool to trade the S&P, having highest correlation with it.

UR choice dear........enjoy with bangladeshi butter

or Pakistani.......creem...

 

[oxusmorouz]

u will definitly get some more charts here........just wait.....

You are not getting the point, Cactus. Anyway, forget it. Good luck with your trading.

 

[Cactus]

Oxy,

Did u mean why I chosen divergance for predicting movement....?

You are not getting the point, Cactus. Anyway, forget it. Good luck with your trading.

 

[Cactus]

Why I chosen divergence and not MACD..

Well, I dont have a problem with MACD.but I really have a question.Why the introducer of MACD used 3 MA .? (12 period26 period. And 9 periodor any other period.) What is the base of using Average of 2 EMA.? Just confirmation of trend.

But in this process we get the confirmation little letter.or say it supply delayed information

Whereas with divergence we get the information at-least 9 points before.and this earlier information can provide few points

also divergance is not a free tool.......it need a confirmation with (at-least)crossover and (if possible) with VSI. (as while using BB we use confirmation with either stock-hastik or RSI)

 

[columbus]

Atleast RSI catches bottoms and peaks ,but not always.

I am giving 2 live examples of HDFCBANK and DLF.

HDFCBANK

The peak price of this bank is not peak value of its RSI but it was far below.
Similarly Peak value of RSI is not coincident with peak value but still moved
up from this value.

DLF

The bottom value of RSI coincident with LOW value of RSI once mometum
set in this counter.(Of course this is not LOD ).Peak of RSI is definitely
coincidented with Peak price or HOD.

As outcome of the poll reflects,the tool , RSI ,roughly catches the PEAKS
and TROUGHS.