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Blueice

Member

Posts: 10

Joined: 11/15/2006

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Subject : RE: divergences
Posted : 11/21/2006 3:37 PM
Post #10843 - In reply to #10668

I dont have real time version and I only do swing trading in stocks. My idea is to buy at the high of the candle where there is divergence and macd cross, and place a stop loss at the low of the last lowest low, remember this is a contrarian trade but precursor of a new trend as well, therefore it needs wide stops such as atr or parabolic sar, since there is no fixed profit target, you have to trail.

Right now I have some 200 stocks in my universe and I have to eyeball every chart everyday to see the setup, I am around 70-75 successful in picking the setup and follow it, sometime it changes into nice trend but some time it takes a while.

I firmly believe that all trends start from divergence, another observation is this type of setup is less successful in shorting.

Confitmation is by volume only if it is higher than previous day.
I am posting three screenshots to give an idea how this setup unveils.
Attached file : aapl.gif (77KB - 498 downloads)
Attached file : akam.gif (82KB - 464 downloads)
Attached file : amp.gif (78KB - 447 downloads)

Deleting message 10843 : RE: divergences


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