Ask what is diverging from what? If an equation puts together data from the past (like say a trend continuing to unfold), then when divergence occurs between the indicator and the price or something, it most likely tells you something ended I like this.....it makes sense. I can actually see why a divergence works.....its not neccessarily a rubber band.... Michael B.
You will enjoy reading Connors Hayward. Try "Investment Secrets of a Hedge Fund Manager". Silly title but you will find several good techniques that anticipate market price moves. There are several aspects of making money. Market turns are fun and games. Just as a scientist would do experiments first, there are several blocks of progress to be made to get the experiments to pay off. The sequence goes from lab to bench to batch to scale up to continuous processing. It turns out that money is made mostly between entry and exit. The sentence is laughable of course. Between end effects is where money is made. Later when your money velocity is very high, you still do not focus on end effects when you get to optimizing cross over from one investment fading to another that is blossoming. This is an example of continuous investment strategies. Most periodicals, books, etc are directed to beginners and people searching for nominal answers. You can see that the comparison made above is really kind is "a why bother" effort. Who would be foced on that comparison and for what purpose? Forums serve a lot of purposes. Getting the aspects of becoming more efficient at making money sometimes comes up. If ETer's got interested in that a great many of the voids in the breadth of ET could be filled in. moreso it would be a major broadening experience. If you look at the sequence above you see that "edge" trading is just looking at narrow aspects of bench work. even prior to considering the scope of he opportunity. apparently the skill combination required to get underway is not as yet understood.