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I hope all of you received their charts, anyone I missed please email me and
I will get back with you as soon as I can to zip you current charts.
As you can see on those charts I sent, how much money you could have made
going against the traders who were trying to force the prices up. They in
fact are very easy to spot only if you do not have scanning software, you
have to check each market and its different time frames everyday. But look at
the examples and the current charts and ask yourself is it worth doing a few
hours every night for such big profits?
Some of you asked what are type2 divergences, these are trend following
divergences, example, let us say the price valleys are rising to higher lows
and the oscillators valleys are making new lower lows, as soon as the %k
turnsaround to crossover the %D you got a trend confirmation divergence. Some
traders call it sling shot trading.
Type 1 Divegence are when the market is in a defined trend whether up or down
and you get a bearish top, this does not mean the trend is changing, this
could be a minor correction in a up or down market. When the correction is
over then you buy or sell in the direction of the intermediate or longer term
trend.
Now what is really exciting is when the prices reach the top of a long term
regression channel and the oscillator shows a bearish top, you can bet your
socks the market will begin a new trend and as you see your Feeder Cattle zip
I sent to you all, there was over 600 point move in two trades in 8
months!!!!!!
This is by far not the holy grail of trading, but it comes close, another
thing I like to mention is it does not matter what kind of trading software
you have whether it be Omnitrader, Supercharts, Metastock, etc., they all fit
into the overall trading scheme. You must learn your software well enough to
know its strengths and weaknesses.
I use several because what one lacks the other more than makes up for it. It
all depends what kind of trader you want to be. I do not want to trade
everyday, that is why I pick divergences as a unique trading tool. It lifts
up the skirts of the traders showing greed and power of the buyers and
sellers one of the very few tools out there that detects this type of trader.
I am in the process of getting a new data vendor so trades will come a little
slower for a short time. You may be wondering what is the catch, why am I
doing this for strangers and asking for no monies? Because there is more than
enough money in the markets for anyone out there, but not enough technical
traders to help one another succeed. Thanks to the internet this problem is
solved. We pay enough for our software programs.
I expect when I need help in the future I can find it here as well. Everyone
have a nice week, and do not let your emotions rule your trading system.
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