AI
Thursday, May 16, 2019 7:38:36 AM
Sometimes you catch a RUNNER
Divergence is not an "exclusive" feature of certain indicators. Most indicators are based on price and can show divergences...
But all indicators are LAGGING because they are calculated on prices that have already occurred.
I consider divergences to be the best LEADING indicators there are.
I like to use a trend-follower like TRIX in the price pane (shown above as a red/gray histogram).
But also notice the B-C divergences in the study pane.
The Stochastic oscillator (yellow line) has obvious divergence.
The divergence on the blue/gray MACD histogram is a little harder to see
as are the divergences in the MACD EMAs (red/green lines & white dots).
The above example shows quite a massive run which is not all that uncommon for the emini DOW 30 futures.
An entry at 4:15 PM around 25600 could have resulted in a 165 point gain 2 hours later.
That would be $825 for every contract bought.
Pretty good return considering that you only need to have $500 available in your account
to put on a 1 contract trade AND you don't have to risk anything near the entire $500 to do it...
Divergence is not an "exclusive" feature of certain indicators. Most indicators are based on price and can show divergences...
But all indicators are LAGGING because they are calculated on prices that have already occurred.
I consider divergences to be the best LEADING indicators there are.
I like to use a trend-follower like TRIX in the price pane (shown above as a red/gray histogram).
But also notice the B-C divergences in the study pane.
The Stochastic oscillator (yellow line) has obvious divergence.
The divergence on the blue/gray MACD histogram is a little harder to see
as are the divergences in the MACD EMAs (red/green lines & white dots).
The above example shows quite a massive run which is not all that uncommon for the emini DOW 30 futures.
An entry at 4:15 PM around 25600 could have resulted in a 165 point gain 2 hours later.
That would be $825 for every contract bought.
Pretty good return considering that you only need to have $500 available in your account
to put on a 1 contract trade AND you don't have to risk anything near the entire $500 to do it...
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