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Re: [amibroker] Re: Hidden Divergence



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Rakesh,

Thank you for the explanation.

I found an example here that could be useful to Gerard

http://www.trading-naked.com/images/DailyFeaturedChart/dfc0206031.png

Best regards

Rakesh Sahgal a écrit :
>
> Reinsley - Hidden Divergence is a term used to refer to a scenario 
> where an indicator makes new hi/lo that is not confirmed by price action .
>
> Gerard the graphic you sent was quite interesting. The fact of the 
> matter is most times we don't get text book setups. The one you have 
> pointed out is almost as good as it gets. The trick is in the 
> recognizing i.e. being alert to the possibility that a setup might 
> come up in the near term and then having a trade execution strategy 
> that has suitable safeguards built into it.
>
> Regards
>
>
> Rakesh
>
>
>
> On Sun, Dec 21, 2008 at 9:23 PM, reinsley <reinsley@xxxxxxxx 
> <mailto:reinsley@xxxxxxxx>> wrote:
>
>
>     Hi,
>
>     >>Am I correct in my analysis that this constitutes bearish hidden
>     divergence, and the probability exists that the downtrend will resume?
>
>     I don't know what you mean by "hidden", simply a divergence is :
>     the price makes a second top higher ( or flat at the same level )
>     and the momentum's second top is lower ( weak )
>     A downtrend could appear.
>     Sometimes there are three tops before the price collapse.
>
>
>     I know no rules concerning volumes. I can't say anything.
>
>     BTW, it would be nice to draw automatically such divergence with an
>     AFL formula...
>
>     Best regards
>
>     --- In amibroker@xxxxxxxxxxxxxxx
>     <mailto:amibroker@xxxxxxxxxxxxxxx>, "Gerard Carey" <gcfinance@xxx>
>     wrote:
>     >
>     > I'm attempting to sharpen up my `Hidden Divergence' skills.
>     > The .doc attachment shows a recent period on the S&P500 chart
>     where I
>     > have attempted to define an instance of `Hidden Divergence'.
>     > I'd appreciate your comments as to my analysis.
>     > Also links to sites that have useful explanations.
>     >
>     > The .jpeg attachment shows the chart with greater clarity, but
>     without
>     > my waffle.
>     >
>     > Regds, good trading, and Merry Christmas,
>     > Gerard
>     >
>     > --
>     > http://www.fastmail.fm <http://www.fastmail.fm> - Access your
>     email from home and the web
>     >
>
>
>
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