To Show that TA works

Discussion in 'Technical Analysis' started by BT247, Apr 26, 2009.

  1. BT247

    BT247

    Not all TA, anyone with a new indicator seems to want to write a book, but there are fundamentals of TA that are nearly a century old, some even older that still apply today-think candlesticks. Take a look at this indicator used as a divergence tool for turning points-tracking acc/dist.

    <a href="http://www.flickr.com/photos/23623637@N05/3475501784/" title="Picture 10 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3619/3475501784_19ce8569b0.jpg" width="500" height="313" alt="Picture 10" /></a>


    Note that divergences on this 1 min chart almost always preceded a change in trend. It's also scalable. I us t on every time frame- including monthly. The higher the time frame, the more significant the move.

    <a href="http://www.flickr.com/photos/23623637@N05/3475591395/" title="Picture 12 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3576/3475591395_7bcb896380.jpg" width="500" height="313" alt="Picture 12" /></a>

    above is a 5-day-note how it called the 2007 and 2007 tops plus the 2002/2003 rally.