It is a generous contribution to ET,and for this I commend nopm, who stands out as a really helpful poster relative to the mindless/useless crap we see every day here. But I'd like to remind everyone that he has been very open about the drawdown his system faced, which seemed quite large, although there were mitigating factors due to his day time job which may have affected his performance. That should warrant some cautiousness against blindly adopting this system, unless one can hedge with systems that can take advantage of trends. I see so many on this thread who are jumping in like they found the holy grail, and I would highly recommend to tone down the enthusiam... because ultimately, divergence is just one facet of market structure. Without a proper 'context', I highly doubt that divergence trading alone would help a trader reach real profitability or the full scope of his/her potential. I also find it ironic that this system is generating such joy and enthusiasm when the VIX is at near 3 year low and the next market move is likely around the corner...
No, the stop loss is the only stop used before the Keltner Channel is touched. If it gets really close (like within .5 pts.) often I'll start following the parabolic and make a judgement call on exiting on a touch of it. npp
no pm, can you please post a pic of your chart today? i want to match my indicators with yours. my data only goes back 2 days so i can't compare with your previous charts. thanks.
ADX just crossed over 30 the price is outside/near the upper keltner chanel divergence is apparent on cci now we need a down bar?
Too early. Divergence isn't clear to me. I don't see any reduction in momentum. This looks more like a breakout to the upside. I'm waiting until the divergence is clear.
I am using ensign software, it's clear on it and automatically drawn, perhaps someone can post their charts please. Thanks for your comments no pm
I think this is where you get into a bit of discretion here. I understand what he's saying, there's no divergence between two distinct peaks, even though the CCI didn't follow up this last move.
I said it was too early because the price was not showing a loss of momentum. I want to see the CCI pointing down while a new high is being made.