Tick Divergence input

Discussion in 'Technical Analysis' started by bmwhendrix, Aug 31, 2006.

  1. This is my first post here. I have traded off and on for several years with small test accounts and have always closed them when I saw I was headed down the wrong road, usually money management problems, but gradually getting more disiplined.

    I have a methodology that is based on tick divergence at tick extremes on 5 or 10 minute charts which Seems to have some merit. Of course there are some caveats as with any system.

    I have seen some valuable insights offered by experienced traders here and wondered if any would be offered on the general value of tick divergence.

    Thanks,
     
  2. tortoise

    tortoise

    Perhaps you'd like to get the ball rolling by sharing some of your insights first...
     
  3. The pros are not trading setups but they know who is. jmho.
     
  4. I'm not sure my observations would qualify as insight, but one observation would be that at least in the current environment a tick of greater than 1000 associated with a 5 minute price high, followed by a greater or equal price with at least 4 bars separation in conjunction with a lower tick by at least 100 points, often is a setup for at least a 2 point move down in the ES. Seeming to be a little more valid when these price highs are against resistance.