Its a Bear Market and not correction

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  #101  
Old 13th February 2008, 10:41 AM
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hari09omkar will become famous soon enough
Default Re: Its a Bear Market and not correction



Quote:
Originally Posted by renu daga View Post
hi
i gave second thought to ur reading,,,rgt i ma wrong!!!
just chcek teh chrt attached..

nifty for short term in buy above 4940in close

renu
This is not divergence Mam.This is convergence.Price and ur oscillator are not in disagreement with each other.

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  #102  
Old 13th February 2008, 10:41 AM
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oxusmorouz is on a distinguished road
Default Re: Its a Bear Market and not correction

Quote:
Originally Posted by renu daga View Post
hi
members,,
interesting just check....out nifty showing divergence since 21st jan till now ,,when changing the chart in line format....positive divergence with rsi..
kindly check....and comment....seniors i requset u pls highlight on this notification...!!!
am i right / wrong
renu
Owing to the way in which the RSI (or MACD or momentum/ROC or whatever price oscillator) is calculated, divergence "will" be visible when the prices fall-rise-fall again (positive divergence) or rise-fall-rise again (negative divergence). Why? Because the retracement causes averaging out of the indicator and the indicator moves upto central level.

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  #103  
Old 13th February 2008, 12:36 PM
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Default Re: Its a Bear Market and not correction

A flat(sideway movement) can easily create a divergence, as the divergence are relative to previous pivot high/low.

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  #104  
Old 13th February 2008, 12:37 PM
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Default Re: Its a Bear Market and not correction

Whats a "central level"?

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  #105  
Old 13th February 2008, 12:43 PM
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Default Re: Its a Bear Market and not correction

hi
what i still think it is divergence,,,,rsi moving in upper direction ,,and nifty close is moving on down side...

renu

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  #106  
Old 13th February 2008, 12:59 PM
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hari09omkar will become famous soon enough
Default Re: Its a Bear Market and not correction

Quote:
Originally Posted by renu daga View Post
hi
what i still think it is divergence,,,,rsi moving in upper direction ,,and nifty close is moving on down side...

renu
Ok if u think so....but what's in thinking?

Attached Images
File Type: png Niifty line chart price-rsi relation.PNG (37.9 KB, 27 views)
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  #107  
Old 13th February 2008, 01:15 PM
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Default Re: Its a Bear Market and not correction

Quote:
Originally Posted by amitt29 View Post
Whats a "central level"?
Midpoint sorta thing (although not exactly midpoint in all cases). 50 for RSI, 100 for Momentum, 0 for ROC, 0 for MACD etc.

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