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Strategies & Market Trends : Stochastics

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To: Wayners who wrote (23)1/23/1998 1:08:00 AM
From: posthumousone  Read Replies (1) of 927
 
when you use oscillators to find divergences what price do you use
IE if your looking for a bearish divergence to find a market top (or stock top?) you compare when price rallies to a new high to while oscillator refuses to rise to a new peak......

OK what do they mean by new high?
an all time high?
a yearly high?
or a new high in a recent trend?
does it have to be high? can it be close say if 20 was recent high in up trend and it dipped and rallied to 19 does that count?

my best guess would be a failed attempt to rally to a recent high
if a high of 20, 4 months ago a dip to 12 and then 3 months later it rises to 17 dips and then goes to 16 while the oscillator doesnt reach a peak higher than when it was at 17 is that BEARISH. ?

or do i have to compare it to the price of 20?
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