Fundamental And Technical Analysis

THE RELATIVE STRENGTH INDICATOR AND DIVERGENCE By By Daryl Guppy. Taken from http://instaforexsabah.blogspot.com/ Technical indicators are constructed by manipulating some aspect of price such as a moving average of prices over a 10 day period. The Relative Strength Indicator (RSI) tries to anticipate a change in the trend. This is a leading indicator ... Continue Reading

There are nine cool rules for trading divergences. Learn 'em, apply 'em, and make money. Ignore them and go broke. Rule No 1 In order for divergence to exist, price must have either formed one of the following: Don't even bother looking at an indicator unless ONE of these four price scenarios have ... Continue Reading

Divergences act as an early warning system alerting you when the market could reverse. For example, if bulls have steadily pushed EUR/USD higher, the appearance of divergence between price and indicator could mean that bulls are running out of gas and price will soon fall. Here’s how you could trade divergences: Divergence Type Price Oscillator Trade Regular Higher ... Continue Reading

A hidden divergence is used as a possible sign for a trend continuation. If price is making a higher low (HL), but the oscillator is making a lower low (LL), this is considered hidden bullish divergence. If price is making a lower high (LH), but the oscillator is making a higher high ... Continue Reading

A regular divergence is used as a possible sign for a trend reversal. If the price is making lower lows (LL), but the oscillator is making higher lows (HL), this is considered regular bullish divergence. If the price is making a higher high (HH), but the oscillator is lower high (LH), then ... Continue Reading

What if there was a low risk way to sell near the top or buy near the bottom of a trend? What if you were already in a long position and you could know ahead of time the perfect place to exit instead of watching all your unrealized gains vanish before ... Continue Reading

Stochastic Fundamental Behavior by Howard Arrington To understand a study more thoroughly, it needs to be observed on a theoretical Elliott wave formation. To often a study is slapped on a chart, adjustable parameters are tweaked, and with the benefit of hindsight some trade signals are derived. The advanced student might ... Continue Reading

Divergence is often said to be a leading indicator. Divergence is price action measured in relationship to various indicators ie., MACD, CCI, RSI, Stochastic and others or in relationship to another instrument or measure of the market like Tick. There are 2 basic types of Divergence. Divergence Cheat Sheet by Vaughan Kilpatrick It's ... Continue Reading