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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: id who wrote (3900)	7/19/2000 6:45:53 PM
From: John T.	Respond to of 19219

id, I saw your question about divergences. I've looked at the COMPQ 60-minute chart for the period in question. The lows, in both price and RSI, on 7/6 and 7/19 are too far apart in time. I don't think you can draw any valid conclusions solely from this divergence.

To: id who wrote (3900)	7/20/2000 1:35:53 AM
From: J.T.	Read Replies (1) \| Respond to of 19219

id, sounds like your question has been answered. I would not use the word "divergence" but "anticipatory impending trend change" based off the RSI or Stochastic from price or index. What you really want is the exact point when RSI turns and is confirmed by price and can tell you to go "long or short off the divergence". It is sematics game and I see what you are getting at. However RSI could theoretically go lower to 0 from 8.26 (I shorten the lens) and still have COMP move lower. Best Regards, J.T.