Divergence Trading Works

Discussion in 'Technical Analysis' started by T1P1, Sep 13, 2011.

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  1. bh_prop


    Since you've had the software huh. I'm guessing that was day 1 since clearly you are UrmaBlume from TradersLab with $1400 of colorful indicators to sell that of course look foolproof in perfectly chosen hindsight examples. Nothing worse than a vendor who pretends to be promoting market discussion. That's what folks are tired of.

    Personally, I think you have generated some neat ideas over there but your sly approach to selling indicators and the way you handle any online criticism sickens me

    #11     Sep 28, 2011
  2. T1P1


    I thought the topic here was divergence trading and the efficacy of using indicators based on order flow rather than price.

    Form over substance kills substance as is plainly evidenced by the dearth of meaningful content by posters like you.

    Could you please reference any post you have ever made on any forum that contains an idea, concept or technology that you authored.
    #12     Sep 28, 2011
  3. bh_prop


    Actually, there is no meaningful content in this topic, just you trolling for new suckers, er I mean customers. Good luck with that.
    #13     Sep 28, 2011
  4. T1P1


    The 20 minutes before today's close (10/03) in ES showed once again the power of divergences between price and order flow.

    The attached chart, again, shows one negative divergence between Price and order flow confirmed by another. In the next 20 minutes ES dropped 20+ points.

    The topic is Divergence Works. Plus it seems to work better when the divergences are between price and volume based indicators rather than price vs price.
    #14     Oct 3, 2011
  5. Where there is a divergence on the lower pane?

    #15     Oct 3, 2011
  6. T1P1


    There are three panels:

    The top is price and the point here is that when price in the top panel was making a new high the the moving window of order flow in the middle panel did not.

    The bottom panel is an indication of the balance of trade and by making a lower high when price was making a higher high - it too produced a negative divergence.

    As price made a higher high the 2 indicators of order flow and the balance of trade made lower highs = double negative divergence between price and order flow. The pattern is quite common.
    #16     Oct 3, 2011
  7. I mean where did you get the divergence on the bottom pane???
    #17     Oct 3, 2011
  8. T1P1


    The underlying number is lower on the second high. It may not seem so on the graph but the divergence is there.

    Net New Trade is an indication of net buying and selling volumes. V94 is a moving window of net trade and is much more sensitive than NNT.

    In addition this topping action was further confirmed by the spike in the intensity/velocity of commercial trade shown in the chart below.
    #18     Oct 3, 2011
  9. Where do I sign up? :p
    #19     Oct 3, 2011
  10. the1


    You do see the one toward the EOD that didn't work, right? Divergences are like every other indicator...sometimes they work, sometimes they don't. It's the trader interpreting the signals that will determine profit or loss.

    #20     Oct 3, 2011
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