StockFetcher Forums · General Discussion · Best indicators for Divergence<< 1 2 >>Post Follow-up
kb4444
24 posts
msg #44198
Ignore kb4444
5/26/2006 7:53:48 AM

What do you all consider the best indicators to use to spot divergences? I've been relatively successful with Stochastics but I'm just wondering if there's a better indicator out there to make it easier..and what settings. Thanks,

KB


WALLSTREETGENIUS
983 posts
msg #44209
Ignore WALLSTREETGENIUS
5/26/2006 10:24:12 AM

Here they are in "best" order....

********************************************************************************

RSI(2)

RSI(7)

CCI(7)

Willams %R(7)

Elder-Ray's BullPower / BearPower

********************************************************************************


KB4444....you won't find 5 more better than these 5! When RSI(7), CCI(7), and Will(7) are all showing divergence, "LOAD THE BOAT!"

Peace.


- RIGGS -


kb4444
24 posts
msg #44213
Ignore kb4444
5/26/2006 12:04:25 PM

Thanks Riggs... I will look into those.

KB


maxreturn
745 posts
msg #44235
Ignore maxreturn
5/26/2006 5:28:05 PM

Macd with settings of 12 and 26 give the best, most meaningful divergences IMHO. Before looking to trade a daily divergence however, I always look at the weekly chart with it's own MACD with the same 12,26 settings as a filter.


WALLSTREETGENIUS
983 posts
msg #44238
Ignore WALLSTREETGENIUS
modified
5/26/2006 6:01:48 PM

maxreturn

Macd with settings of 12 and 26 give the best, most meaningful divergences IMHO. Before looking to trade a daily divergence however, I always look at the weekly chart with it's own MACD with the same 12,26 settings as a filter.
_________________

WRONG! The MACD is the SLOWEST in showing "divergence." Here's a random example.....

Look at AVM. The first time MACD showed any kind divergence from 4/10/06 to present was 5/22/06 when MACD Histogram ticked up the first time at it's second lower bottom. What happened? Price FELL two days after that! Now look at RSI(7)and Williams %R(7).....the REAL divergence didn't take place until 5/24/06.

But Max is right about looking for divergence in the MACD....but always wait for the other indicators to show their face of divergence FIRST B-4 entering. And max' advice about the "weekly" charts is right on target. I couldn't give better advice than that.....


- RIGGS -





marine2
805 posts
msg #44351
Ignore marine2
5/29/2006 1:16:32 AM

If you watch macd(4,8) while it's under 0 and with its macd(4,8)slow line crossing above macd(4,8)fast line you will see divergence.

It's true, macd(12,26) indicator is too slow for catching a stock that about to pop to the upside, but, still useful for the long term trading person out there wanting to catch a stock trend.


mantis2k4
20 posts
msg #44388
Ignore mantis2k4
5/29/2006 8:39:59 PM

thanks for the idea riggs:

Fetcher[RSI(2)is above RSI(2)2 days ago
low is below low 2 days ago
low 1 day ago is above low 2 days ago
low 2 days ago is below low 3 days ago
and RSI(2)is decreasing 1 day
average volume(90)is above 100000

RSI(7)is above RSI(7)2 days ago
and RSI(7)is decreasing 1 day

Willams %R(7) is above Willams %R(7)2 days ago
and Willams %R(7)is decreasing 1 day

cci(7)is above cci(7)2 days ago
and cci(7)is decreasing 1 day
]




SOLIDOAK
1 posts
msg #45001
Ignore SOLIDOAK
6/15/2006 11:53:08 AM

Hello, how can I scan for: show me stocks between 20 and 100 where volume has been decreasing for last 2 days and price has been increasing for last three days? Thank you all


nikoschopen
2,824 posts
msg #45002
Ignore nikoschopen
6/15/2006 12:11:51 PM

Write the code just as you have described above:

Fetcher[
price between 20 and 100
volume has been decreasing for last 2 days and price has been increasing for last 3 days
]




BFreshour
139 posts
msg #45009
Ignore BFreshour
6/15/2006 2:49:33 PM

I personally prefer using two CCI's. One with a longer term value and one with a shorter term value. When I see divergence in both, I go for it. Been making a killing in Forex using it.

BTW: Thanks ALF! ;)


StockFetcher Forums · General Discussion · Best indicators for Divergence<< 1 2 >>Post Follow-up

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