Divergence

[Simon]

ImranQ,

Have you investigated this at all? If so what are your findings?

 

[iq200]

Oldun,

Very interesting article...

However, Kase does work in the area of energy. Therefore
it doesnt neccessarily mean that there is a dodgy connection
as Enron is involved.
Tho I wouldnt stake my life on it )

Imran

 

[iq200]

Simon, Yes actually I looked at this briefly a while ago
and coded some of the equations at the time.
Certainly the results are better than what you might
get from other indicators.

I have the book and have her papers but dont currently
have the time to devote to studying in the greater detail
that I would like, which, I plan to do soon in the near future...

Regards,

Imran

 

[Trader333]

Imran,

I dont trade the ES and all I was doing was showing an example
of a recent trade setup and was interested in others views.


Paul

 

[Oldun]

Imran,

It was only the quote:

She claims that divergence signals corroborated by two of her indicators gives 100% success rate

that made me chuckle re the Enron connection.

 

[ChartMan]

Divergence is an art all on it's own. When mastered, it's extremely profitable.

 

[madasafish]

Well having reread the thread and retested my set up, I have set up a scan to run in 5 minutes with the the following logic:

ADX >30 (14,3)
CL <KELNER lower (20ema, 2.5std devs)
CMF>CMF.1 (10ma,3 smoothing)
OR
CL>KELNER uppper
and
CMF>CMF.1

and ran in a 1 minute DAX chart with a white flag showing the signal

(yes I know the logic says buy/sell when the next bar reverses the direction but I wanted just to see when it triggered)

It triggered at approx 08.15am on DAX futures this am at 3552.5 and I then had a buy signal at 3556 (all in 1 minute chart) As I write at 9.03am DAX is now at 3590.25.. a gain of 34 points..

I'm impressed and have added to my scans:

IRT logic as follows:

MPD>30 and( MPD#1>MPD#1.1 and CL<MPD#2) OR(MPD#1<MPD#1.1 and CL>MPD#3)/*5 minute ADX>30 and either close is below Keltner 2.5deviation lower band and CMF is rising or vice versa

MPD is 5 minute ADX
MPD#1 is CMF
MPD#2 Is Keltner Lower
MPD#3 is Keltner Upper

Chart is attached to next post

 

[madasafish]

chart attached: note first call triggered on 1 st bar of day .. not advisabel to take but a scalp 5 points possible.. but a sell signal there

 

[madasafish]

I'm afraid a gremlin has altered my scan:
it should read

MPD>30 and( MPD#1>MPD#1.1 and CL<MPD#2) OR(MPD#1<MPD#1.1 and CL>MPD#3)

 

[madasafish]

Hmm Its doing something wrong : I rewrote it correctly but one of the characters must interfere with the board's posting logic

MPD>30 and( MPD#1>MPD#1.1 and CL lessthanMPD#2)
OR(MPD#1less than MPD#1.1 and CL>MPD#3)

the logical character "less than" which is "<" does not appear to show

 

[Oldun]

madasafish,

Very interesting.

What software are you using?

 

[madasafish]

I'm using Linnsoft's IRT
www.Linnsoft.com

 

[Oldun]

madasafish

Thanks

 

[madasafish]

Another one on DAX today: Flag on white shown in top LHS of 2 min chart at 3568.approx 11.15am. DXA susbsequently fell (no higher his) to 3532 at 15.31.. 36points...3572 was spike at high at divergence so a short at 3568 and a 5 point stop would have been ok: risk reward:7:1

 

[madasafish]

DAX divergences today: 5 minute chart...Note the one at 17:03 at 5952 successfully said the rally would fail .. but Dax regained all lost ground at close..

Divergence earlier in day at 3567 was not as good..DAX fell another 20 points before rallying...(glad I did not take it

 

[madasafish]

yet another one on Dax (and ES) on 30th October

at the top of the big rally after news.. Naote in 5 minute day it fel and rallied a bit more before the proper fall..

 

[Trader333]

Any chance of editing the size of these charts to fit better ?


Paul

 

[madasafish]

so sorry

done in a hurry proper attached chart

 

[iq200]

madasafish, I believe you said the white flags are your signals. What does the cyan around some of the bars signify?

Thnx,

Imran

 

[madasafish]

Cyanide

"What does the cyan around some of the bars signify?"

It means the market is oversold and due to rally:

the exact formula is

SSTAT <=10 and ( SLOWD#1<=20)
where SSTAT is based on: CCI<-100 in last 10 bars where CCI is 6,3 exponential (the light blue line under the chart..
and SLOWD = 9,5,5 exponential.

Works very well..

A warning only as we all know oversold markets can just keep falling... I don't trade 3 min charts on DAX.. but 1 minutes but use 3 as a guide for reversals..