Question about Divergence

Discussion in 'Technical Analysis' started by Flashboy, Sep 26, 2003.

  1. In stochastics when referring to divergence.. lets say.. like this morning in Emini sp..

    Price makes lower low at 12:15 est..

    Now when they say price makes lower low and stochastics makes higher low.. thats a divergence and a buy signal..

    What line has to make the higher low in the stochastics.. both the fast and slow line..

    Or is it the slow line you're supposed to be looking at..

    As I'm writing this in the emini.. price made lower low.. and only the stochastics fast line %D made a higher low.. the %K line made the same low basically..

    So would this qualify for a buy??

    Price has rallied 1.5 pts as of this writing..

    Thanks for any help and good luck to everyone..
  2. dbphoenix


    Depends on how you use it, what your settings are, and what your strategy is. Within the context of my particular strategy, the %D is fairly useless, so I only use the %K, which showed a lower low on the 5m.
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  4. dp,

    Thanks.. My 5 min. chart looks like %K made the same low basically.

    My settings at %K 21, %D 14..
  5. Thanks for the chart Breakout,

    yes I made a typo.. I said fast line is %D.. I meant to say %D is the Slow line..
  6. dbphoenix


    My %K is 5.