Nasty divergence in NQ

Discussion in 'Index Futures' started by jrs3, Jan 9, 2004.

  1. dbphoenix

    dbphoenix

    I'm afraid we're not communicating, which is too bad. There's nothing to analyze.

    There are two general types of indicators: those that oscillate, such as the MACD histogram, RSI, stochastics, and those that are "trend-following", such as the ADX and MACD. An oscillating indicator is relatively useless if you're trending. Plot, for example, a stochastic against today's trending price. On the other hand, a trending indicator is relatively useless if there's no trend.

    This is basic stuff. If you're not willing to accept it, then there's not much to say.
     
    #21     Jan 9, 2004
  2. dbphoenix

    dbphoenix

    By the way, if you've figured out a way to trade trends with an oscillator, consistently and profitably, congratulations.
     
    #22     Jan 9, 2004
  3. jrs3

    jrs3

    Gee your real smart did you learn all that from technical analysis from A-Z. Boy I bet you rake in the dough since your so schooled in technical analysis.

    Learning more and more about the markets only to avoid pain will only compound ones problems because the more one learns, the more he will naturally expect from the markets, making it all the more painful when the markets don't do their part.

    Focus on the NOW moment opportunity flow.

    CIAO!
     
    #23     Jan 9, 2004
  4. dbphoenix

    dbphoenix

    No, not particularly smart. But I've done my homework.

    I assume you went short at your "divergence" and held on while the trade went 10pts against you? That's a risk profile I'd rather not become involved with.

    As long as you're having fun, that's all that matters :cool:
     
    #24     Jan 9, 2004
  5. You're killing me with your typing.

    See the difference between you're and your? Maybe you need "Grammar from A-Z".

    dbphoenix was being helpful. Try not to be so rude in return.
     
    #25     Jan 9, 2004
  6. Turok

    Turok

    jrs3:
    >Focus on the NOW moment opportunity flow.

    Next he'll try to sell us his system.

    Nice polite work DB.

    JB
     
    #26     Jan 9, 2004
  7. jrs3

    jrs3

    I was short @1535 covered @1542 for $150.00 loss. I take every signal from my trading system from 8:30 till 3:00cst. Today netted $440.00 profit trading 1 car.

    This is silly posting on these forums, I am out of here.
     
    #27     Jan 9, 2004
  8. Tea

    Tea

    I agree with DB on the indicators. However, thats still not enough. You have to look at your 5 minute trade in the context of the trend (you were trying for a counter-trend play on the strongest index in a general uptrend) and in the context of larger timeframe patterns.

    Unless you are just going for a couple of points, picking a 5 minute pattern out of context is probably less than a 50-50% proposition.
     
    #28     Jan 9, 2004
  9. mg_mg

    mg_mg

    For MACD Histogram, look at its sign;
    For MACD itself, look at its direction.

    Thus today's NQ started to develop divergence from 10:30 for the indicator seting you used.
     
    #29     Jan 9, 2004
  10. dbphoenix

    dbphoenix

    I agree. But since he didn't understand the difference between trend and oscillation, much less which indicator to use where, I didn't see any point in going further. Why waste the time if somebody doesn't want to learn? What he does with his money is really none of my business.
     
    #30     Jan 9, 2004