Posted 17 September 2010 - 01:12 AM
You seem to be on a journey to find all the hard things before finding the simple stuff. I suppose everyone has to go on that journey before they discover the simplicity of the markets -- they either go up or they go down.
I have nothing specifically on these kinds of divergences. I don't even believe they matter much. One or the other index sometimes leads for a time but they generally move together.
I would recommend the book "Trader Vic: Methods of a Wall Street Master" by Victor Sperandeo. That is a great book, especially the THREE pages in which he tells how to determine the trend. Read that book a couple of times. On first reading you'll probably think it's too simple to be believed. On second reading you might begin to realize it's the truth.
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."