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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: Richard Estes who wrote (7784)1/15/1998 2:32:00 AM
From: The Perfect Hedge  Read Replies (1) | Respond to of 12039
 
Richard-
>>
If you have one going down, one simple way to measure it may have turned is to watch
for 2 days of higher lows and higher highs<<You mean 2 days in a row of higher lows in prices and higher highs with the indicator?
Which is higher highs and lows?Price or indicators?TIA.GD



To: Richard Estes who wrote (7784)1/15/1998 8:41:00 AM
From: Loren  Respond to of 12039
 
Richard...

While I don't use divergence as a primary tool, I definitely consider it as a tiebreaker...

That is, if I only have so much cash in my portfolio, and have to choose between several good looking buy signals, I often pick the one that is shows the strongest divergence.

While I've not done a well designed statistical study (!) on the matter, I believe that this boosts my batting average in terms of '% winning trades'.

Loren