just curious what the first and 3rd stock codes are tech?
Mind you I am asking everyone to confront everything they see and read on forums as the larger majority of it is without substance or substantiation.
I test all my strategies MANUALLY!!
Crazy arguement.
The Charts show a positive result!!!
Here is MACD pretty close to the same.
Give me evidence that one form of divergence out performs another.
Then show me where ANY form of divergence as a foundation indicator consistently out performs the mean of the index.
Add whatever filtering system additional indicator you like---but show me---if its that obvious then it shouldnt be that hard.
Infact give me a list of conditions to be met and I'll find 20 charts that fit the criteria---post them up and see how they go.
So just bullet point the conditions and variables.
EG
. MACD
.Rising volume
Whatever you tell me.(meaning anyone who wishes to contribute)
I'll go to all the effort and if it out performs the index then I'll even send Joe $500---so I'll do all the work and take all the risk-----
Charts using MACD (Same ones)
So Tech, would say a divergence of the stochastic is the same as a divergence of OBV for example?
Also, why are you focussing on being right? And at what point are you considering a divergence signal a failure after what time frame?
Could you please stop asking everyone to take a $500 challenge it is disrespectful.
It doesnt matter what the divergence is from what oscillator,relative to price action. longterm result is the same---no edge.
(A) Ive not seen any concrete evidence to the contrary.Pete says he can do well from it ---fine---but if I or You or anyone out there were to place $1K to 100K on a divergence trade youd be wanting more than here say---hmm perhaps not!
(b) Failure is an equity curve which is underwater.As we havent discussed exits or exact point of entry its a rather mute point.
Ok.
Thought I had.
Now Ive offered Joe $500 if Divergence can be shown to supply an edge to the trader.
From Challenge to Donation.Is that acceptable?
Mind you the response has been underwhelming.
Crazy arguement.
The Charts show a positive result!!!
Here is MACD pretty close to the same.
Give me evidence that one form of divergence out performs another.
Then show me where ANY form of divergence as a foundation indicator consistently out performs the mean of the index.
Add whatever filtering system additional indicator you like---but show me---if its that obvious then it shouldnt be that hard.
Tech,
You might have missed where I said I don't use divergence and I also doubt they give the trader any edge.
However, if we are discussing them, we might as well get the parameters right.
I maintain that stochastic osc is the wrong indicator to use for the logic and reasons already stated, whether or not the signals generated are similar some of the time.
There is nothing crazy about that.
Tech I think you are missing the point that the way a divergence is traded is not the same for all people. And each indicator is different.
Considering a divergence is a warning what is the issue that sees you so stridently opposed to them?
No-one has made any claims that they work all the time nor given reasons for that, nor talked about exits and exact entries etc. Without this info you don't have much to be critical about unless you would like to give specific examples from your own trading.
If you want to donate to Joe I am sure he would be happy with it.
Tech,
You might have missed where I said I don't use divergence and I also doubt they give the trader any edge.
However, if we are discussing them, we might as well get the parameters right.
I maintain that stochastic osc is the wrong indicator to use for the logic and reasons already stated, whether or not the signals generated are similar some of the time.
There is nothing crazy about that.
Tech, I can't really help you in regards to trying to come up with a set of coded rules for trading divergence, as I've never really been someone that trades with it much. I do use the McClellan oscillator a little bit, only to the long side and only as 1 of a number of filters. Personally think it'd test out horribly in isolation. What I am interested in is the how and why of the prior tests you've run.
Maybe if people can see some tested results and have a little look "under the hood" of any test that shows divergence to be useless, then it may at least shed some light on how not to use it, which is still quite useful information to have
So you'd like the formula for testing divergence and any other variable I choose to use.
Perhaps youd like me to just simply run sims on anything people cough up rather than the 20 charts suggested.
OK
Ill play
Give me the conditions and I'll do both!
But give me the conditions!!!
Unbelieveable.
I'm asking people to THINK-----do due diligence and you want me to do all the work.
Hey if you think (meaning anyone out there) you can consistently out perform the index trading divergence (any divergence) then all wealth and riches to you.
Why bother I'll just let people absorb un substantiated theory and BUTT out!
Now those conditions are???
You don’t need those indicators to know which one is likely to fail or
which one is likely to succeed. You just need an understanding of the
price action in relation to the Quarterly cycles.
NAB:- Already trading around the Quarterly highs in April (resistance)
RIO:- Already trading around the monthly 50% level in February (support) with a bias to rise towards the Quarterly highs in April (resistance)
MAH:- already trading around the October highs (resistance) with a rotation pattern down into the monthly 50% levels.
Those indicators are a waste of time if you don't optimise the price
action with the Primary and Secondary cycles:- support & resistance
I wasn't asking for the entire formula. Sorry to have offended you. Personally I don't have any interest in spending hours pouring over charts to come up with some kind of idea on exactly what conditions I'd like to see tested. If I had that level of interest I'd have tested it out myself.
I had just assumed that when you said you had tested it over many different exchanges that you'd have results and a general overview of the idea available to show people.
I'll leave you to it.
I'll leave you to it tech.When it comes to oscillators who's components are either
Open,close,high,low,even range I don't know about that (---see below in answer to Wayne.).
If I was going sailing and wanted a strong wind forecast I would want better reliability than Divergence.
How many do you want I made a point on 3 charts not one correct.
I keep harping on about application (Theory without application remains theory) and all we get is theory.I have run many many tests on divergence and cant find 1 that returns a profit in fact I cant find 1 that doesn't wipe out the starting capital over an extended period. Ive even offered to run an exercise over 230 charts with the parameters selected by the populace.
Not 1 reply
I'm truly Underwhelmed!
I'm sure he would be pleased.
OK
Well I don't know about that.
%K = 100[(C - L14)/(H14 - L14)]
C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.
%D = 3-period moving average of %K
So if the stochastic is rising then the closing price is either the highest price for 14 periods or moving toward it.
If an M/A is rising or crossing a slower M/A it to(The close) is moving higher.
How is one superior to the other?
More to the point why is one WRONG relative to momentum??
a = LLV(RSI(14),20);
b = LLV(L,20);
d = Ref(L ==b AND RSI(14) > a,-1) AND Ref(RSI(14) > a,-2);
Buy = d AND H > Ref(H,-1) AND C > Ref(C,-1);
BuyPrice = C;
Sell = 0;
x = ValueWhen(Buy,LLV(L,20));
y = ValueWhen(Buy,C);
stoptrigger = x - 1;
ApplyStop( stopTypeLoss,stopModePoint,(y - stoptrigger));
target = (y-stoptrigger)*2;
ApplyStop( stopTypeProfit,stopModePoint,target);
PlotShapes(shapeUpArrow * Buy, colorGreen, 0, L, - 10);
Plot(stoptrigger,"stop",colorYellow,styleLine);
Plot((y +target),"profit target",colorBlue,styleLine);Ill leave it to you tech
Means?
Prof
Your right it is raw and really doesnt find divergence.
I also note no further comment re Stochasic v MACD or any other indicator?
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