Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Do Or Die

Divergence Trading Strategy- Advanced

Recommended Posts

typical desperate scammer... OT on other's thread, then plaster it with his own promotional material... he thinks he can do it because he is a paid sponsor. I think not. He is a sponsor in his own dedicated forum. It gives him no right to hijack other people's thread with his commercials. This just shows his untasteful unscrupulous character.

 

Hello to everyone. This is my first post on this forum. I know of about three or four forums overall, but I hardly ever look at any of them (including this one) because of all the dumb conversations. This thread here is a very good example. This person Do or Die feels disrespected because this other person Urma disagrees with his method of divergence analysis, so he goes on to attack him for his opinion. He accuses him falsely, for example saying that he claims to manage other peoples money, but when the defendant corrects him by saying that he only stated that he manages other traders, the attacker doesn't even stop to apologize because he's still in a rage for feeling disrespected about his divergence technique. And on top of this, other people are jumping in to attack this Urma person aswell, simply because of his opinion. IS THIS STUPID OR WHAT?!

 

Now, I don't know who this Urma person is or what he's selling, and it really doesn't matter. There are honest and dishonest business people in every aspect of this world. If you have proof that this person is one of the dishonest people, then state and show your proof with facts. Otherwise, don't judge and don't attack out of suspecion or prejudice. Also, when you falsely accuse some one of something and you're proven wrong, then have the decency to at least apologize before you quickly change the conversation (and hoping no one noticed your foul up).

 

Again, I'm not taking sides here. But I'm NOT blind either. It's very obvious when some one is out of line. And I can honesltly tell all of you guys here that are attacking this Urma person, that you're ALL out of line.

Share this post


Link to post
Share on other sites
Hello to everyone. This is my first post on this forum. I know of about three or four forums overall, but I hardly ever look at any of them (including this one) because of all the dumb conversations. This thread here is a very good example. This person Do or Die feels disrespected because this other person Urma disagrees with his method of divergence analysis, so he goes on to attack him for his opinion. He accuses him falsely, for example saying that he claims to manage other peoples money, but when the defendant corrects him by saying that he only stated that he manages other traders, the attacker doesn't even stop to apologize because he's still in a rage for feeling disrespected about his divergence technique. And on top of this, other people are jumping in to attack this Urma person aswell, simply because of his opinion. IS THIS STUPID OR WHAT?!

 

Now, I don't know who this Urma person is or what he's selling, and it really doesn't matter. There are honest and dishonest business people in every aspect of this world. If you have proof that this person is one of the dishonest people, then state and show your proof with facts. Otherwise, don't judge and don't attack out of suspecion or prejudice. Also, when you falsely accuse some one of something and you're proven wrong, then have the decency to at least apologize before you quickly change the conversation (and hoping no one noticed your foul up).

 

Again, I'm not taking sides here. But I'm NOT blind either. It's very obvious when some one is out of line. And I can honesltly tell all of you guys here that are attacking this Urma person, that you're ALL out of line.

 

Freddy,

 

Wow, logic, perception and understanding of the facts, the topic and the issues at hand.

 

Plain simple truth is a plus in any discourse - welcome to Trader's Lab.

 

Thanks for the note and the PM with your phone number. If it is convenient with you, I will call you a couple of hours after the open Monday and try and answer your questions. I welcome all honest queries and look forward to speaking with you.

 

cheers

 

Pat

Edited by UrmaBlume

Share this post


Link to post
Share on other sites
Dear Mr. Vendor, kindly read the first post (and this time properly), this is where the discussion supposedly started before you brought your mysterious indicators.

 

Mysterious? Maybe to you. The algorithms behind Cumuliative Market Delta and moving windows of order flow have been out there for some time.

 

Of course if the total depth of your research has left you with the idea that price/price divergence trading is a "...Trading Strategy - Advanced" then maybe you missed them. Such readily available formulae are only mysterious to "shallow drillers."

 

UrmaBlume

Share this post


Link to post
Share on other sites
Mysterious? Maybe to you. The algorithms behind Cumuliative Market Delta and moving windows of order flow have been out there for some time.

 

Of course if the total depth of your research has left you with the idea that price/price divergence trading is a "...Trading Strategy - Advanced" then maybe you missed them. Such readily available formulae are only mysterious to "shallow drillers."

 

UrmaBlume

 

I will answer in appropriate thread http://www.traderslaboratory.com/forums/technical-analysis/5288-trade-flow-harmonic-trade-6.html#post133630

 

Requesting all to post material relevant to the threads only icon10.gif

Share this post


Link to post
Share on other sites
Price based indicators compare price to price_trend, (not price to price). I'm not aware of anything offering a more optimal divergence signal than divergence from trend.

 

Under the topic, "The Physics of Price," consider that price is an object propelled by a force. With that as a given then a more optimal divergence would be a divergence between the path of the object and the magnitude of the force.

 

What you are talking about is a difference between the object and its path with no consideration of motivation.

 

UrmaBlume

Share this post


Link to post
Share on other sites

It is better for me to withdraw at this point, after you've posted a reasonable refutation, that is quite eloquent btw, but does not disuade me from my own truth. Wiithdrawl is better for me, than pursuing where this would go from here.

Share this post


Link to post
Share on other sites
It is better for me to withdraw at this point, after you've posted a reasonable refutation, that is quite eloquent btw, but does not disuade me from my own truth. Wiithdrawl is better for me, than pursuing where this would go from here.

 

Thanks for the kind words.

 

Certainly you are correct in saying that price, raw price, is different from the treand of raw price but still the trend is calculated from raw price while the calculation of the motivator of price does not include price in any form as part of its inputs. Thus a difference between an object and a force instead of a difference between an object and one of its derivatives.

 

cheers

 

pat

Share this post


Link to post
Share on other sites

Update:

 

Exit VRSN at today's average price (33.60)

Tight profit stop for CMS(20.70), EOG(102.20) and NSC(73.40)

Hold comfortably DGX, AET, ETN, NSC, EOG; stop is recent pivot high on daily.

 

All calls in profit, except VRSN. So update dedicated to the technology that predicts peak/bottom with 100% accuracy.

 

Continued from the starting posts...

 

dgx, aet, cms, etn, nsc, slb, fdx, are in favor.

 

eog and etn somewhat dangerous.

 

No long signals, yet. All trades on daily charts only, because they can be conveniently posted in non-market hours. If feasible, I will try to post maybe few on intraday time frame such as 2-minute.

 

PS: Do not post in this thread the following, you are always free to start your own thread:

1. Charts with mysterious black-box indicators

2. Claims about profitability of a method without log of live trades

3. Please read the starting post, inclusive of these sentences:

"BTW, the 'advanced' word in title is more of a cliche"...

"I will be calling some signals live in this thread, so it will also serve the purpose of a journal..."

...I use the most recent pivot high, bar high or support as stop loss.

 

Shorts triggered in VRSN, DGX, AET, CMS, EOG, ETN, NSC, SLB, FDX.

Edited by Do Or Die

Share this post


Link to post
Share on other sites

Do or die,

 

+1 for diverging instead of confirmed divergence – regardless of between what measures the diverge is occurring. In all my years, I've heard very little comment (or posts) re the concept of diverging. I admire your perspectives...

 

Rationally, fully formed divergences look safer. In real life, they aren’t.

In the limited market conditions where I utilize diverg., the tested odds of payoff are better for my diverging setups than they are for fully formed divergences – even if I’m using a very short right strength on the pivots. So now in all mkt conditions where diverg is utilized, I go ahead and start building the position using diverging instead of divergence … tactical fitness…

btw, using diverging as we speak real time, just starting to cover some of the EUR shorts I put on last week (fwiw, it will probably be 24+ hours before the positions are fully unwound though...)

 

Do you use classical pivots for all but the current swing or does your method for measuring diverging not use pivots at all? Thanks.

Edited by zdo

Share this post


Link to post
Share on other sites

:)

 

Great to see a fellow divergence trader. In every book and on internet I see the people going by the conventional way to confirm consecutive pivots, but by the time it is confirmed the risk/reward is already screwed.

 

"Do you use classical pivots for all but the current swing or does your method for measuring diverging not use pivots at all?"

 

See the attached example, I use the classic pivot in prices which may or may not correspond to the pivot in oscillator (the blue spike in lower pane indicates divergence). The typical entry is when market cuts the high of previous bar.

example.png.a0d74f14a951a8e0378e3249fc175040.png

Share this post


Link to post
Share on other sites

While we trade in much faster time frames than most of the references here, this morning, in ES, there was a classic double positive divergece in both the 8k & 5k volume bar charts.

 

As everybody here knows we believe that divergences between price and the buying and selling forces that propels price can often indicate change.

 

In the middle of the chart below you can see that as price (top window) makes a Lower Low, both the indicator of net trade and the indicator of the moving window of the balance of trade made Higher Lows which is referenced as a double positive divergence.

 

This divergence was verified and duplicated in the 8k chart:

 

Please click to enlarge image

tpt665.jpg

 

 

UrmaBlume

Share this post


Link to post
Share on other sites

If this Thread is about divergence trading then here is an expample of divergence from just a few minutes ago in today's ES.

 

Regardless of anything else it is a recent chart and it certainly shows a prime example of a divergence setup.

 

Please click to enlarge image

tpt2234.jpg

Share this post


Link to post
Share on other sites

Update:

 

For entry and exit, the average price (H+L+C)/3 of day on which the signal was generated is used to indicate performance, unless a stop is hit.

 

Closed Positions:

EOG (+0.8%),CMS(+0.6%), NSC(+1.6%), VRSN(-0.7%)

 

Open Positions:

DGX, AET, ETN, FDX, SLB

 

Update:

 

Exit VRSN at today's average price (33.60)

Tight profit stop for CMS(20.70), EOG(102.20) and NSC(73.40)

Hold comfortably DGX, AET, ETN, NSC, EOG; stop is recent pivot high on daily.

 

All calls in profit, except VRSN. So update dedicated to the technology that predicts peak/bottom with 100% accuracy.

 

Continued from the starting posts...

 

dgx, aet, cms, etn, nsc, slb, fdx, are in favor.

 

eog and etn somewhat dangerous.

 

No long signals, yet. All trades on daily charts only, because they can be conveniently posted in non-market hours.

Share this post


Link to post
Share on other sites

FWIW I also see negative divergences against the rally back up to 1236. Ultimately the mkt rallied to 1244 before a noticeable pullback. Is that also a trade you would have taken?

 

While we trade in much faster time frames than most of the references here, this morning, in ES, there was a classic double positive divergece in both the 8k & 5k volume bar charts.

 

As everybody here knows we believe that divergences between price and the buying and selling forces that propels price can often indicate change.

 

In the middle of the chart below you can see that as price (top window) makes a Lower Low, both the indicator of net trade and the indicator of the moving window of the balance of trade made Higher Lows which is referenced as a double positive divergence.

 

This divergence was verified and duplicated in the 8k chart:

 

Please click to enlarge image

tpt665.jpg

 

 

UrmaBlume

Share this post


Link to post
Share on other sites

Scratch that question, Pacific time. I now see that indeed the negative divergence trade faded minimal heat from 1236 (to 1239ish) and also would have worked nicely.

 

My apologies Do or Die for further cluttering your thread.

 

FWIW I also see negative divergences against the rally back up to 1236. Ultimately the mkt rallied to 1244 before a noticeable pullback. Is that also a trade you would have taken?

Share this post


Link to post
Share on other sites
Scratch that question, Pacific time. I now see that indeed the negative divergence trade faded minimal heat from 1236 (to 1239ish) and also would have worked nicely.

 

My apologies Do or Die for further cluttering your thread.

 

Thanks for noticing and the kind word.

 

Just about 30 minutes after the positive divergence shown above a Negative Price/Net Trade divergence triggered a bot I am testing and you can see the divergence and the 3 entries performed by the bot in the chart below.

 

The topic here is divergence trading, right?

 

 

Please Click to enlarge image

tpt668.jpg

 

 

cheers

 

pat

Share this post


Link to post
Share on other sites

@ Do OR DIE What are you trying to boast, prove or demonstte by posting a random set of numbers on a random set of stocks? Isn't this thread supposed to be about discussing advanced divergence strategy? You attack another poster on here, then you proceed to make the same mistakes, only in a different way. Just dumb. How about posting some charts of these supposed trades, showing the entries, exits and why they were taken, and showing why your method is superior to just trying to trade random divergent signals on standard indicators? Otherwise you simply waste your time posting all these random numbers, as that is all they are to readers here. Oh, it also destoys any respect people will have for you for anything you choose to post in the future.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By millonmethod
      Hello everyone!
      I am an advanced trader, with many years of experience (about 15 years - 10 living exclusively from this)
      I am going to give you some tips that you must know:
      There are going to be many people who tell you that trade is easy, that with only crossiing a line  with another one you will win a lot of money.... and that´s not true.  No, Sir, reality is far away from that. Many people who start arrive here with the hope that someone "gives them" a free method, they watch youtube videos thinking that this will give them the "strategy" and in a few days they realize that it does not work for them - they lose money - and then They go looking for a new one ... and so on. YES, IT´S TRUE YOU EARN IN TRADING, A LOT. BUT THINK: for a few to win (10% + any BROKER) many others must lose (90% people). YOU MUST HAVE A MONEY MANAGMENT FORMULA ( you can email me) People study so many years to live on this, not because they are dumb, but to know what they do, when, and have absolute effectiveness. It´s very easy to get lost here: do not disperse, jumping from one to another strategy WILL NEVER give you money, it will only waste your time and make you nervous when trading. PEOPLE WHO CHANGE THEIR METHOD CONSTANTLY : LOOOOSE ALWAYS.   If you have the knowledge to develop it, take your time and do it.  Always try it first on DEMO for at least 2 weeks! If not: search to buy a solid strategy (no you tube videos pleassse ! Avoid losing money! ) This is like any business, it requires some capital to start (capital = money in the broker + solid made /purchased strategy) If you are lost: I RECOMMEND YOU NOT TO WASTE TIME IN YOUTUBE, JOIN PEOPLE WHO HAVE EXPERIENCE AND IF YOU ARE GOING TO BUY A METHOD ... PLEASE !!!! DO NOT BUY 10 BAD AND CHEAP METHODS, SAVE MONEY AND BUY ONLY 1 BUT EXCLUSIVE AND MUST ALLWAYS HAVE SUPPORT !!!!!  Do not buy Signals! They never keep up with constant profits! One week will win and the next will lose. Nothing that does not depend absolutely on you will give you the money you are looking for. And if you do not have a strategy (made or purchased) do not even try PLEASE PLEASE PLEASE: DO NOT USE REAL MONEY! AT LEAST 2 WEEK DEMO FREE HELP HERE!!!!!  IF YOU FOLLOW MY ADVICE YOU WILL BE PART OF THAT 10% WINNER, email me.
      Have a nice trading day
       
       
  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.