StockFetcher Forums · Filter Exchange · What is Convergence and Divergence?<< >>Post Follow-up
gocats
22 posts
msg #47149
Ignore gocats
9/24/2006 3:25:03 PM

I have read so many threads on this forum about divergence and convergence...combining RSI and Divergence, EMA with Divergence etc.

Sorry to sound such a noob, can someone point to any website or any documentation where I can read what is Divergence and Convergence and how do you combine it with other indicators?


contrahawk
68 posts
msg #47150
Ignore contrahawk
modified
9/24/2006 5:36:13 PM

gocats,

if you'll Google "Convergence Divergence", you'll find (among others) http://www.trade10.com/Convergence.html which looks like a pretty thorough discussion.

Jim



TheRumpledOne
6,359 posts
msg #47154
Ignore TheRumpledOne
9/25/2006 1:43:00 PM

Simply put...

DIVERGENCE

If a lower price is making a higher RSI(2) value that is POSITIVE DIVERGENCE... get ready to load the boat!

If a higher price is making a lower RSI(2) value that is NEGATIVE DIVERGENCE... get ready to get your shorts on!


gocats
22 posts
msg #47155
Ignore gocats
9/25/2006 4:00:26 PM

But TRO, how can RSI(2) increase when price is falling?



alf44
2,025 posts
msg #47158
Ignore alf44
modified
9/26/2006 9:37:37 PM

gocats,

Because "MOMENTUM PRECEEDS PRICE" !

It's one of the first tenets of Technical Analysis.

As you study more...it will make more sense !


Regards,

alf44



StockFetcher Forums · Filter Exchange · What is Convergence and Divergence?<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus