5 Responses

  1. technicalguy
    at | | Reply

    Damn, this stuff really works. I noted your tweet on Wells Fargo. Congratulations today at least

  2. Jimmy
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    Love Divergence……..what”s your take on Moving avg vs exponential moving averages……and what time frames do you like to use?

    6, 15, 50 EMAs I love for day trading..

  3. Harvey Sax
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    I only use moving averges because I know other people use them. So therefore I use the ones most people look at. That’s the 50 and 200 day moving average. My next chapter in the Investment Survival Guide will be on that

  4. Spyfrat
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    Indeed one of the powers of RSI can be best captured on divergences. in your note and i quote,

    “Stocks that are breaking out or breaking down can trend in a particular direction for longer periods of time and make these types of indicators less useful. ”

    in my study of the parabolics, this type of pattern usually live in a high rsi environment (70 and above). the bubble or the parabolic burst do occur when rsi breaks the 70 level and then the price plunge. there are conditions though on this parabolic scenario. this in contrast to the belief that rsi 70 and above are consider overbought.

  5. andrew cardwell
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    RSI is indeed one the best technical tools available and I have been using it since 1978. Divergence is just one aspect of RSI. I use it and have shared with course students, how to use it to identify trend, recognize trend change and forecast future price objectives in the direction of the new emerging trends.

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