Registered: Aug 2007
08-03-12 05:33 AM
I use TSI, True Strength Index, for very long time, it is a slow indicator, I don't want anything fast, fast to me means short lived trades and over trading. Also use EMA and Bollinger Bands, but trend is different for me in some methods. One of the methods I use day session data of ES and couple of EMA's, then I use 24 hour data and different idea for trend, so if both don't offer same trend, there are no trend trades. This concept allows me to seek very conservative trend trades for day trading. This stops me from trading caused by huge gap moves, when in doubt, don't.
You watch same indicators long enough, you should be able to know what it will do in next couple bars, when it does something abnormal, THAT is a form of divergence, and good to take notes as to why.