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In a message dated 98-04-13 11:25:19 EDT, you write:
<< What kind of divergence are we talking about here? It sounds like
just a few bars in which RSI ticks down while price is rising. What
little work I've done on divergence has always focused on patterns
where price peaked, receded, and peaked higher, while RSI (or
some other oscillator) failed to climb as high at the second price
peak as it had on the first. (Adjust in the obvious ways for down
moves.) These patterns were longer than 10 bars almost by definition.
>>
Greetings Owen and RTs,
Oops, I should have been clearer on this. What I am talking about in the "10 +
bars"
is the length of the OVERALL up or down move, not the specific pattern that
involves
RSI divergence. What I should have said was "10+ bars making a higher high or
lowere low for the move". This often signals a move is near a turn. Couple
this with fading momentum and RSI divergence and you will often be able to
tell a turn is at hand.
Hope I cleared this up.
Peter
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