 Trading divergence, And one more question... |
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 Sep 16 2010, 05:12 AM
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#1
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 Member Group: Traders-Talk User Posts: 15 Joined: 29-July 10 From: Saint-Petersburg, Russia Member No.: 9655  |
Hi again,
Any good literature to recommend regarding trading divergences between DJIA, S&P fut, S&P, NASDAQ, etc.? Thanks. |
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Sep 17 2010, 01:12 AM
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#2
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 Member Group: TT Patron+ Posts: 2867 Joined: 18-July 04 From: USA, northeast of Victoria, BC Member No.: 2102 |
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. -------------------- "Simplify, simplify, simplify," Henry David Thoreau
"Always take the signal and sometimes you just get lucky," Linda Raschke. “Luck is what happens when preparation meets opportunity,” Seneca. |
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Sep 17 2010, 03:35 AM
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#3
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Member Group: Traders-Talk User Posts: 15 Joined: 29-July 10 From: Saint-Petersburg, Russia Member No.: 9655 |
 You are right, I am on the journey. However, I am searching for the simplicity, so here you aren't. To my mind divergence is one of the easiest things to notice. I've read much about it, also from a person who is very successful in trading. So, what I'm gonna do is just back-test it a bit. Yesterday I collected data for 5 years back. Today I'm gonna play with divergence. |
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Lo-Fi Version | Time is now: 21st May 2013 - 01:18 AM |