Trading Strategies Using Technical Analysis

One point, if you are doing day trading, then give equal importance to negation of price divergence. It also gives good trade, if one can judge the situation properly.

Please explain with an example.

Re: Divergence on Daily Time Frame

Thank you very much Raunak ji. This is first time in my life, that in my trading experience, I seem to be learning something. As with every trader, I am eager to learn and understand the entire system better.

Thanks again for the motivational feedback.....your encouraging words would surely shape my trading career.

Re: Divergence on Daily Time Frame

Thank you very much AW10, Can you also please provide me with some understanding, link or example of Convergence.

Re: Divergence on Daily Time Frame

Laxsri,

You are most welcome. I think you are in the right direction. Just pick up one setup and master it. That's going to put you light years ahead in terms of trading. I'll try and put up some videos for you sometime in future.

Tc

Re: Divergence on Daily Time Frame

Raunak Bhai just out of curiosity how old are you and since when are u trading?

Whenever I see in real time trading, I will upload the chart.

What I was meaning -

Example - say as per EOD chart we in good up trending and intra chart (say 5 mins TF) makes a negative divergence and after that it refuses to fall for sometime, but it does enough to give negative feeling to many. Then we would get a flying move when price crosses above the high. This is because, all would have gone short seeing the divergence! The way I look for entry with trigger above high. To judge whether we are in correct trade not, you will find price would move 15-20 points minimum in next 5-10 mins in favor.

Hope this helps!

Re: Divergence on Daily Time Frame

nimish, hope you are not asking match-making question ? (just kidding )

Re: Divergence on Daily Time Frame

If you remember the definition of divergence then coming out with convergence is not difficult. Plz stretch yourself a bit, and I am sure u will be able to find that as well.

When u don't see divergence, then ther is potential that u might see convergence.

Look at the left side of the chart that u posted. In Nov, there was small pause in Stoch around 60 level, and then it broke-out from that on stoch. at the same time price also made new high..
In Dec starting, again there was breakout in stoch as well as in price.
Only in Jan, we see some divergence coming in.
In Early March, prev div that we saw in Feb got negated, price made new high and so the stoch.. and mkt flew to new high after that.

Hope you can catch some pointers from this and bulid further on it .

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as mentioned by Raunak, just pick up one system and master it. If you want to trade Stoch, then don't miss the thread by Smart_trade on trading oscillator and continuation of that by raghavcc.

happy trading

Re: Divergence on Daily Time Frame

Am very young Nimish .. I hope I can call myself that ..

Am 27 .. and have 7 years of live trading/investing experience

Was introduced to trading at a very young age as my father is a trader/investor himself.

And just to answer AW10's query on matchmaking, I am Unavailable :lol:

Tc