Tuesday, May 24, 2011

Trading divergence on many indicators

Trading divergence can be used on many indicators - stochastics, MACD, RSI and CCI to name a few. As with most indicators, divergence signals a greater period of time (TF) is going to show up higher in price. The chart examples are going to be compared with the price stochastics and MACD indicators. Each table has 50EMA (blue), 200EMA (Red), 9/3/3 stochastics and the 7/10/5 MACD histogram on it. There are many other stochastics and MACD settings that also work for divergence signals.

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