Discuss MACD Convergence Divergence at the Technical Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Originally Posted by harjeev
Hi
Thanks Yes I am reffering to the bearish divergence on ...
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Hi
Thanks Yes I am reffering to the bearish divergence on the weekly charts. I would like to ask is as Satyam is showing a Bearish Divergence
1. should a trader go short or sell off their holdings in this counter.
2. If yes what sould be the stop loss in this case and how to arrive at the stop loss in case of sale.
Please advise
You can go short once Satyam breaks below its previous swing low. Once short keep your stoploss at the swing high.
Hi gopu
Divergences are very crude way of using oscillators.If you have spent time watching intraday charts you would have noticed tht momentum indicators will show divergence for a while and suddenly those divergences vanish as price breaks new territory.They are basically hindsight tools.Divergences sit pretty in hindsight agonizing how u have missed the top.However they get erased out quickly if price moves quickly in the opposite direction.And thts why u will never see a failed divergence when u look back at charts.Seems very simple but very much overlooked.
Crossovers(right hand particularly) are better use of momentum osc. like stochastics
Cheers
CV
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6th May 2005, 11:20 AM
Re: MACD Convergence Divergence
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