Divergences

Discussion in 'Journals' started by romik, Jul 2, 2006.

  1. romik

    romik

    I'll be making calls in this journal based on divergences. This journal will help me with my research, which forms part of my e-mini trading, though this will be dedicated to any financial instrument.

    All calls are hypothetical in nature, I will not be actually making the trades, this is just a study into divergences.

    Quick link explaining divergences: https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=8968

    I will be quoting current prices, potential profit targets and of course stop levels.

    Here are some terms I might be using:

    BLD - bullish divergence
    BRD - bearish divergence
    3BRD - triple BRD
    3BLD - triple BLD
    BB - Bollinger Band
    MA - moving average
    PT - profit target
    WRB - wide range bar

    Oscillators used to determine divergences:

    RSI
    CCI
    MACD

    As this is a research journal, I do not mind people making comments, suggestions, posting charts, making their own calls, joking, but please no personal attacks. If somebody is bugging you, just stick 'em on ignore. Let's keep it civilized. Thank you!
     
    Buy1Sell2 likes this.
  2. The divergence is my favorite. Good luck with your efforts.
     
  3. romik

    romik

    AIT (NYSE) Applied Industrial Technologies Inc

    Current: $24.31
    PT1: $25.00
    PT2: $26.00
    PT3: $30.00
    Stop: $20.50
    BLD in MACD HIST on a daily chart attached
    Weekly chart is in an uptrend and recently oversold, which is clearly seen in CCI

    http://finance.yahoo.com/q?s=AIT
     
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  4. Romik, good luck with your journal! I hope that the honesty and openness of paper trading in public will help you immensely. Is there a way that you could take a picture of the chart instead of providing a link to it?
     
  5. romik

    romik

    SIN06 Silver July 06 future contract

    Actually this is a call I made earlier on at the price of $10.20 in the $Silver$ thread.

    Current at the time of call: $10.20
    PT1: $10.90
    PT2: $11.50
    PT3: $12.00
    Stop: $9.50

    BLD "B Class" in MACD HIST on a daily chart attached

    NOTE: I have to give credit to another ET member ___B1S2___ from whom I've picked up quite a bit of information regarding divergences. B class divergence is where the 2 lows in the indicator are pretty much at the same level though price has made a lower low or higher high;

    I actually do hold SLVs. So I do have some interest in this one :D

    http://www.futuresource.com/charts/...b=CANDLE&st=BOLL(20,2);MACD(12,26,9);RSI(14);
     
    Buy1Sell2 likes this.
  6. romik

    romik

    Hi B1, thank you, there is a chart attached, I've also provided a link to Yahoo Finance quotes.
     
    Buy1Sell2 likes this.
  7. Quote from Romik--NOTE: I have to give credit to another ET member ___B1S2___


    No need to thank me--You picked up most of it on your own!! Good luck with the trades here. You are doing the right thing to experiment with it in public.:)
     
  8. romik

    romik

    Well, this is going to be more of a part-time study really, you know what I do from my posts in the ESJ and I've very little time on my hands for this journal to keep it going full-time. Also, I do enjoy participating in your journal, you'll probably see me there more often than here LOL.
     
    Buy1Sell2 likes this.
  9. romik

    romik

    AMGN (NASD) Amgen, Inc

    Current: $65.23
    50% capital allocation @ current price and scale in @ $62.50
    PT1: $69.00
    PT2: $71.00
    PT3: N/A
    Stop: $60.00
    BLD ALMOST complete in MACD HIST/CCI's made higher lows (not a perfect BLD shape wise) on a weekly chart attached

    http://finance.yahoo.com/q?s=AMGN
     
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  10. Care to comment on your profit taking strategy? How do you determine them? Do they really perform better than waiting for the opposite signal to occur? Or is it better to let your winners run with a trailing stop?
     
    #10     Jul 2, 2006