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I want to thank everyone for their input in leading me in the right direction
about divergence software.
I think its great, everyone shares a little of there success with one another.
So I will boldly ask a question, probably some of you have already traded in
this fashion, and I would like an opinion as to why you would continue or why
you would not trade this way.
When any of you decide to trade let's say a classic divergence pattern a
Bearish Top, does anyone draw or automatically drop and drag regression
channels over the price chart to see where the long term resistance and
support reside?
We all heard time and time again, never trade against the longer term trend,
but the way I saw it, when I plotted my regression channels on the Gold daily
chart the prices were barely pushing through the top of the long term channel.
At the same time the Stochastics has shown a Bearish top. I would set my stop
above the Long term resistance and short the market.
Does anyone agree with this particular strategy? Sell high and Buy back low.!
The intermediate trend channel on the Gold daily chart within the longer term
channel, is in a 45 degree decent and a classic bullish bottom is given by
stochastics, while at the same time current prices are falling within this
decending channel. Would you agree or not, to wait out the correction for the
prices to rise for a short time to get close to or touch the top of the
decending channel to short this market or would it be wiser to go long from
the time you spotted the bullish confirmation on stochastics.
I want to zip this chart to those intrested so you can get a pictorial of what
I am trying to say. Your input would be appreciated, I am open to all
suggestions and I am eager to learn from all you pros out there.
Thanks
Attachment Converted: "c:\eudora\attach\DIVERG~1.zip"
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