RSI divergence.

[Satyen]

Hi
All divergence in all time frames !!
waiting coments


Regards
Satya

 

[Czar]

correct me if i'am wrong but should'nt divergences be seen in a 14 bar period, if so the daily divergence is invalid but the hourly is bad, I mentioned the same in Ashish's thread

 

[Satyen]

Hi
Czar what i know is price is moving ahead of its mean
Can you please tel why we should not consider 14 bar period
again why daily divergence is invalid ??

waiting your comments


Satya

 

[winstonn]

Hi satya,

weekly and daily are too early to be considered as divergence. Let time unfold it.
Well, hourly is in divergence, i agree , see the higher time frame i.e. daily is in uptrend.
So this hourly bearish divergence is not a valid trade as is against conservative style.
Yeah! if u r agressive trader, u can bet on bearish divergence , but it is better to be conservative and go with the trend. Because:

there are old and bold traders, but there are very few old bold traders!!!!!!!

AUM,
Winston

 

[Satyen]

Hi satya,

weekly and daily are too early to be considered as divergence. Let time unfold it.


AUM,
Winston

Hi
Winston thanks for reply .... when we say divergence is valid one ?? once price make a top
as weekly and daily has not made ......??

again in which value of RSI should be used for RSI(14) or RSI(7) ??

Waiting your reply

Regards
Satya

 

[bvpraveen]

Hi
Winston thanks for reply .... when we say divergence is valid one ?? once price make a top
as weekly and daily has not made ......??

again in which value of RSI should be used for RSI(14) or RSI(7) ??

Waiting your reply

Regards
Satya

My two cents:

Divergence are relative. You can see an excellent divergence, but after some time the prices may move in the opposite direction.

RSI doesn't change with the time period. ie 14 or 7 or 5 doesn't matter. In fact if you plot rsi(14) and zoom out y-axis, you get rsi(5), and vice-versa. Try that. RSI(5) zooms out the minor moves which appear dwarfed in RSI(14). Thats it.

Praveen.

 

[Satyen]

Thanks Praveen

Satya

 

[djsinha]

Divergence observed in the Indiabulls daily. Weekly in downtrend. So is it advisable to buy close to support levels of 400 and 340 and hoping the price to climb upto the immediate resistance level of 480?
Pls clarify..

 

[sudoku1]

Hi Vishal,

divergences are sometimes good, however they alone must not be primary tools for taking a trade.

Tell me if you wanna know about a FRENCH person who does not know hindi at all , and u ask him in hindi? you need to learn french first!

in the same way there is a language of markets! please try to concentrate on true market language. Market structure is one of the languages that we can learn and profit a lot! Howere knowing just A to Z is not enough, you need to learn the framing of sentences and get the good communication between you and market so that you understand what it speaks.

ahh!! is it confusing? please read Saint's post and u will know wht i wanna say!

* my way of using RSI or any other divergence is this:

spot the higher time frame trend.
look for lower time frame opposite trend, spot divergence in lower time frame and trade according to higher time frame trend.

eg. if 60 min charts are clearly in uptrend, go to 5 min time frame and only take the bullish divergences and vice-a-versa.

In fact Big boys have very simple methodology to trade , they only see multiple time frames and increase their success rate amazingly! However, today indicator based trading and their modifications are facinating people so much. But markets keep on changing, on every time frame from 5 min to monthly! these indicator based systems dramatically change with changing periods. only wht not changes is the MARKET LANGUAGE on all time frames! Learn to learn it!

Take care,
AUM,
Winston

:thumb:............