How to trade divergence ? and where to put stops?

hi
few day's ago i posted here a thread but didnt got any replay. may be becouse of my spelling mistakes here i post my querry again hope this time this thread will be active and will get noticed.

1} in divergence of MACD, HISTOGARAM, OCILATORS, what should be the entry point?

2} where sould we place stops ?

3}what is risk to reward ratio?

4} what is your experiance with this type of trades ?

whope this time you guy's have some time to answer my querry.

thanks in advance.

warms regards
Ali

will somabodyplease have a look at my thread.

Ali

hello i am divine_11 plz another time i want to request all friends in this forum. i am just i
just enter the stock market few months ago. i cant understand tha charts and its pattern .how can i do this? how can i put resistance and support? how can i understand
trends ? some body plz read notice this post .

Dear Ali,

The questions which u asked, i had the same some time back. Every one comes through the stage. Even though not answers for what you asked i would like to say the following:

When traded properly divergence could be a very good signal.
But before all, you should know these things:

1) What is divergence
2) Why a divergence occurs between price and Indicator. That is the reason behind divergence formation.

If you say there is no reason to know these things to trade the signal i may not have an answer. But knowing the thing will certainly have advantage. Because at starting point we read about the divergence some where in articles and look at the chart for the pattern and we see that its working good. But when you really trade MANY divergence signals fail. And you start wondering why this is happening. Then usually you leave or if u still have patience you start studying furtur and observe different charts.....it just goes on... After some long time if you still have patience then you may go for understanding logic behind divergence.
At that point of time you may recollect your big loosing trades which you traded based on divergence.

Hence i suggest you to invest sometime and understand the reason for divergence formation and why a trend may reverse after divergence pattern formation.

After studying this and observing many charts based on your study, you will find the answers yourself.. That would be good for you. Answering your questions is not a big deal. You can even find it through google search. But out of my little exp i would sugest this way.

Thankyou.

To -mod-
I dont thinl anybody interested to answer my querry so please delet this thread.

Ali

Go here for some material on divergence..

http://www.trading-naked.com/Divergence.htm

he dud thanks a loooooooooooooooooooooooooot

Ali

Dear All,

The link posted by capricorn has excellent stuff.

Dear Capricorn,

Thanks for providing with that link. Thats really good. Through your post i could understand that you have very good understanding about different kinds of divergences. I need your suggestions in few things and if your a tech person that would be great. I wil come up with my query in next post.

Why don't you post your query . I 'll certainly try to answer it , also there are a lot of experts here who would do so .