How well does a Hidden ( Reverse ) Divergence work

Discussion in 'Technical Analysis' started by kevinqc, Apr 17, 2007.

  1. kevinqc


    How do you enter using a hidden divergence and which Indicators work well with it to spot the hidden divergence ?

    Any examples & charts highly appreciated.

    Any websites, articles & book suggestions would be also appreciated.

    Thanks much.
  2. kevinqc


    Thanks but it does not explain at what point do you ener. It is easy to see in hindsight but how do you determine the entry point as it is developing and he hasn't given the parameters for the Indicators he is using.
  3. You can use any confirmation signal you want to determine an Entry Signal.

    * S/R Levels
    * S/R Zones
    * Japanese Candlestick Patterns
    * Times & Sales (momentum or pressure)
    * Volatility Analysis
    * Intermarket Analysis
    * Traditional Chart Patterns
    * Market Breadth Analysis

    There's many more types of Entry Signals not listed but has been discussed in-depth here at ET.

    Simply, try a bunch of stuff to see what's suitable to you as a confirmation for an Entry Signal.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  4. kevinqc



    It seems most of them will require large stops except may be Candles which I have never used.

    Have you used any of them successfully ?

  5. Yes in reference to the Entry Signal methods.

    Also, I don't understand why you've come to conclusion that what I've mentioned requires wide stops.

  6. kevinqc



    May be I don't have indepth knowledge of these methods but usually zones, intermarket analysis, chart patterns & volume analysis usually don't give very close entry signals.

    Please comment.

  7. Kevingc,

    Your prior commentary was about initial stops.

    Now your talking about Entry Signals.

    Can you define what a "close entry signal" is to you because I really do not understand what your saying.

    Thus, I suspect you and I are talking about different things considering you think they involve wide stops and I think the stops can by small or wide.

    You use the term close entry as if from your experience you tended to chase the price beyond the confirm pattern signal.

    Please explain or give a chart example to show any of the above methods I mention that DON"T give a "close entry signal".


  8. kevinqc



    What I mean is that more accurate your entry point is, smaller the stop you can choose.