alf44
2,025 posts
msg #42025
- Ignore alf44 |
3/14/2006 2:47:00 PM
...oh boy !
I saw that one coming ! :)
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nikoschopen
2,824 posts
msg #42027
- Ignore nikoschopen
modified |
3/14/2006 3:13:37 PM
On 3/12/2006, TRO in his infinite wisdom promiscuously stated: POSITIVE DIVERGENCE IS LOWER PRICES MAKING HIGHER READINGS ON AN INDICATOR.
No matter how unclear ure definition of divergence is, I hope you don't just mean price going up while ure joe-sixpack oscillator is hitting the gutter, and vice versa. A true (bullish) divergence is when the damn price is making a lower high (from the previous high) and the oscillator is making a higher low (from the previous low). The reason for considering the previous high or low, which you conveniently forgot to espouse, is that you can't connect the dots; and in lieu of those inconvenient dots, you can't draw the damn trendlines. How the hell are you suppose to know if the trend is up or down without trendlines?
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alf44
2,025 posts
msg #42029
- Ignore alf44
modified |
3/14/2006 3:33:09 PM
...with all due respect, niko...
Your "definition" isn't correct either ! imo
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You say...
"A true (bullish) divergence is when the damn price is making a lower high (from the previous high) and the oscillator is making a higher low (from the previous low)."
That's NOT what any definition that I have ever read regarding "bullish divergence" says !
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You might want to re-read that and make the appropriate edit/correction. Or, correct me if I am somehow misunderstanding your definition (which seems sort of bassakwards to me).
Regards,
alf44
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nikoschopen
2,824 posts
msg #42032
- Ignore nikoschopen |
3/14/2006 4:15:50 PM
Alf, thanks for bringing that to my attention. I guess nothing can be considered in a vacuum. Allow me to regurgitate in its proper perspective.
According to the script, bullish divergence is formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low.
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alf44
2,025 posts
msg #42033
- Ignore alf44 |
3/14/2006 4:29:14 PM
...much better ! :)
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WOW !!!
I can hardly wait till we get to the discussion(s) on "Hidden Divergence" or "Reverse Divergence" as it's sometimes referred.
That will really make lil riggsy's eyes glaze over !
Regards,
alf44
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nikoschopen
2,824 posts
msg #42034
- Ignore nikoschopen |
3/14/2006 4:34:27 PM
BTW, here's the divergence filter that I wrote on behest of RIGG's plea when he first came on the scene with the exclamation, "I can't believe it..."
The reason why post this is that you need more than 2 days to find a meaningful divergence.
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scvidar
87 posts
msg #42035
- Ignore scvidar |
3/14/2006 4:46:53 PM
It appears that here we have the tendency to distinguish ourselves in speech, we have an example of speech divergence, in that we diverge from the speech of others. Thus we are trying to distinguish between what background noise and the essence that retains it’s spectral information. For obvious reasons, a speaker may deliberately diverge from the speech of his interlocutor, thus signalling his intention to disagree with, or even repudiate, him.
The only thing I haven’t figured out is how to make money off of it. LOL
Karl
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TheRumpledOne
6,407 posts
msg #42043
- Ignore TheRumpledOne |
3/14/2006 6:49:23 PM
"According to the script, bullish divergence is formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low."
I agree Niko.
Which, you must agree means lower prices making higher indicator readings.
If I didn't know what divergence was, I couldn't have programmed the divergence display.
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drew9
171 posts
msg #42045
- Ignore drew9 |
3/14/2006 7:18:56 PM
So Riggs, Just could not resist. Are we to assume now you are unemployed? Last I knew you were not able to post any new filters per your new "employer." Was it not knowing what "divergence" meant what finally woke him up? LOL
Regards,
Drew
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nikoschopen
2,824 posts
msg #42046
- Ignore nikoschopen |
3/14/2006 8:14:39 PM
Although there might not be any flaw in ure coding, there is a flawed logic in ure understanding of divergence nonetheless. By ure admission of the validity of my definition, if bullish divergence is "...formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low", then there must be a secondary price low and RSI(2) high. The below filter is the final version of the divergence filter you posted. If I'm not badly mistaken, this filter in no way tells me anything about any secondary high or low. It only shows me where the current price and RSI(2) readings are in relation to their previous 6, 7, 8, 9 days reading. It's only when price rebounds from its second lower low while the RSI bounces off its higher low can will even discuss bullish divergence.
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