Reverse Divergence

Hi,

Are there any good books or articles about reverse divergence ?

http://www.trading-naked.com/divergence_reverse_divergence.htm


Thanks.

 

I don't remember if the attached PDF was stashed away for value or just digital pack-ratting. Oh well... hopefully it's material you haven't ran across,

 

I don't know that I would call this "hidden". The trend is over when you get the lower high. I have a pdf on using divergence in the TICKQ, but it's too big to upload here (ET still has a 1meg limit on uploads). If you prefer using something that isn't an indicator, let me know and I'll figure out a way of getting it to you. If you'd rather use an indicator, just about any oscillator would work.

 

http://www.amazon.com/Two-Roads-Div...:+Trading+Divergences+(Trading+with+Dr+Elder)

 

Thank you for all the responses.

It is easy to see these divergence signals in hindsight. Trading them profitably in real-time is much more difficult. I am still learning how to read them accurately.

Good night.

 

Of course hindsight is easy but here is something to look at.

Support tested numerous times, on price action alone that would be a signal to position for a long.

With the indicator pulling back below previous low and price holding at support/previous low, that setup is what some call a slingshot or rubberband trade when using an indicator.

Is this a guarantee setup every time absolutely.

Of course not, just like life, set a buy stop above previous bar high, break of trendline, close above MA, what ever you are comfortable with set a stop below and see what happens.

 

For a second i thought there's a new type of divergence. Haha..

 

Those are all just psychological filters of perception of price action. Reverse in this case is no more special than regular or ZLR or whatever indicator pattern.