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Re: My Take on Diversion



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as compared to a wave with no divergence. I can find no legitimate
reason to place a trade based on an indicator flaw.
Divergence has been a wasted diversion. I post this because I
wish someone could have successfully convinced me of this years ago.


First my disclaimer: I don't know sh*t so if you listen to me you're dumber 
than I am.

I would agree with you on price based indicator divergences.  However the 
one type of divergence that seems to have some predictive value is 
intermarket divergences.  For instance a divergence between to SP and the 
Nasdaq or between the Dow and the Transports or whatever.  Another example 
would be divergences between the nearby and the deferred futures contract 
or between say soybeans and bean oil.  I tried once to daytrade the SP 
based on this theory but I found it was much more difficult to implement 
real time than in hindsight  (see disclaimer).

David  

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