|
PureBytes Links
Trading Reference Links
|
Divergences give us clues regarding the strength or weakness of a trend,
however divergences can run for extended periods of time. I don't
recommend trading divergences by themselves, but rather to trade price
reversals in the direction of the divergence as these can often lead to
very profitable moves. For example, looking at the chart which I posted
with the bullish divergence during May, one would have made two attempts
at going long NASD during May with the first reversal yielding a small
profit or loss (depending on stops) and the second yielding a nice long
run.
Earl
----- Original Message -----
From: <HBernst963@xxxxxxx>
To: <eadamy@xxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, July 07, 2000 8:05 AM
Subject: Re: AD volume indicator
> The only problem with that indicator is previously it peaked in
November,
> 1999, 4 months before the NASDAQ peak. It seems that the divergence
can go on
> for a long while before killing the market. AD indicators just aren't
what
> they used to be.
>
> Howard
>
|