[timokrates]

Originally Posted by DbPhoenix »

After that, divergences are irrelevant until the first level of R is reached at 90. There is a slight divergence here, but there is never a real test. Price instead just drifts sideways. And the short is never triggered if one places an entry stop behind price rather than just jump in.

Thanks for this thread and your other work as well. Over the last weeks I tried to get deeper into everything, but I'm still maybe only at a level of an advanced beginner.

Your comment above lead me to ask you about confirmation in general. From what I destilled from your posts specially in this thread I believed that you try to enter your trades from a one tick chart as close to a predefined level as possible.

The problem entering without any "confirmation", only with a TICK divergence from my experience so far often caused trouble. Even with a huge divergence forming I often saw price grinding through the level travelling to the next. The problem of course also is, what could "confirmation" be? The entry below/above a bar, springboard or level in general?

Don't get me wrong, I know that this all is never a hundred percent and is a puzzle of understanding - which I like, but which also contains some mental dynamite.

For me the order (or the plan) how you analyze the market and the (short term) swings and levels would be interesting. Apart from the discretionary aspect involved, how do you put the puzzle of levels, price, volume and market breath together in realtime?

[bigsnack]

FWIW, tick divergences are only relevant (to me) under certain circumstances and contexts. It really depends on how much you want to use the tick as a guide. In my opinion the tick and tick/q became the most useful to me only after I studied it just as deeply as most in this forum have studied the Wyckoff way itself.

For me tick divergences are relevant only when the divergences show a very specific behavior. Here are what I specifically look for:

A) Has the trendline on the tick/q broken prior to the divergence occurring? Quite often, the tick will break trend minutes before price breaks trend or begins to reverse.

B) Secondly, I will only enter on tick "hooks". The ideal entry for me is when a trendline on the tick breaks, and is shortly followed by a tick hook with divergence. A perfect example of this was on the trend day we had just before the new year. I follow the NYSE tick, but the strategy works the same.

[bigsnack]

A snapshot of the tick from Thursday. I hope it helps!

[Head2k]

Originally Posted by timokrates »

Thanks for this thread and your other work as well. Over the last weeks I tried to get deeper into everything, but I'm still maybe only at a level of an advanced beginner.

Your comment above lead me to ask you about confirmation in general. From what I destilled from your posts specially in this thread I believed that you try to enter your trades from a one tick chart as close to a predefined level as possible.

The problem entering without any "confirmation", only with a TICK divergence from my experience so far often caused trouble. Even with a huge divergence forming I often saw price grinding through the level travelling to the next. The problem of course also is, what could "confirmation" be? The entry below/above a bar, springboard or level in general?

Don't get me wrong, I know that this all is never a hundred percent and is a puzzle of understanding - which I like, but which also contains some mental dynamite.

For me the order (or the plan) how you analyze the market and the (short term) swings and levels would be interesting. Apart from the discretionary aspect involved, how do you put the puzzle of levels, price, volume and market breath together in realtime?

Since Db doesn't seem to be active, I will try to answer.
Db always said that TICK divergence is only the icing, not the cake. That means that you shouldn't look for TD mechanically. The market tells a story, and TICK is only a part of this story.

As for the confirmation, I take exhausion and current trend in account.
Taking exhauston in account means that I look for climactic action at S/R and a lack of follow-through then.
Taking the current trend in account means that I expect a higher high after a higher low. And I am ready to enter off a lower high after a lower low. And if I don't get such entries I am ready for a hinge.

The main thing I am looking for is effort vs. result and acceptance vs. rejection. TICK is only supplementary information on micro-scale. That means I use the help of TICK only to guess a local turning point. But before I even decide to look at the TD I must be convinced that this potential local turning point has a greater meaning than just "local", regarding both the level (S/R) and the setup (exhaustion andf / or trend reversal pattern).

Anyway, if and when Db is active again, he will probably provide a better answer.