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Traders International

  #13 (permalink)

Elite Member
Florida
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: ES
 
Ausy Mick's Avatar
 
Posts: 69 since Jun 2009
Thanks: 45 given, 63 received

Divergence

Hi Guys

Posted below are the requested indicators and template. To complete the template you need to draw horizontal lines at + and - 40 on the
Demark REi indicator panel or use the constant lines indicator.

I have also posted some screenshots of Thursday morning's price action,
and a simple picture explaining divergence. A couple of things to note about this system - it is very easy to see these trade setups in hindsight ( 20/20 :-) ), but you have to be focused like a razor blade, and quick as lightning in real time (practice in sim)....

Another thing to note is that the market may show perfect divergence which is glaringly obvious and still not choose to respond to it. Usually if it does that it may give a signal for trend continuation but this is not cast in stone. Also note that divergence could be against the trend, or with the trend. Knowing when it is safe to go couter trend will help you stay on the right side of the market, as a strong trend could easily destroy counter trend trades.

Confirm signals with a longer time frame if you have to. Listen to Big Mike and Sharky - they have a wealth of wisdom to offer.

Vast, coming back to your question you will see that the indicators are the stochastic overlay, the ergodic oscillator and the Demark Rei .I threw out the MACD. I do however use Macd in some of my other systems. The thing about Macd is that it has a tendency to hide the truth and you have to be able to discern when it is doing that.

At the moment I have way too many sytems that I created during the last year.
Fortunately most of them are profitable, but I am working on perfecting two systems and using only those two. The one will be for lower volume months( like summer) and the other one for regular trading when we have volume in the market.

Hope this help guys.

Take care and have a good weekend.

Ausy Mick

Attached Thumbnails
Traders International-divergencesamples2.gif   Traders International-233-tick-divergence.jpg   Traders International-233-tick-divergence-2.jpg  
Attached Files
Register to download File Type: zip divergence.zip (16.1 KB, 178 views)
Register to download File Type: xml 233 Tick divergence .xml (15.4 KB, 124 views)
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