gocats
22 posts
msg #47149
- Ignore gocats |
9/24/2006 3:25:03 PM
I have read so many threads on this forum about divergence and convergence...combining RSI and Divergence, EMA with Divergence etc.
Sorry to sound such a noob, can someone point to any website or any documentation where I can read what is Divergence and Convergence and how do you combine it with other indicators?
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contrahawk
68 posts
msg #47150
- Ignore contrahawk
modified |
9/24/2006 5:36:13 PM
gocats,
if you'll Google "Convergence Divergence", you'll find (among others) http://www.trade10.com/Convergence.html which looks like a pretty thorough discussion.
Jim
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TheRumpledOne
6,529 posts
msg #47154
- Ignore TheRumpledOne |
9/25/2006 1:43:00 PM
Simply put...
DIVERGENCE
If a lower price is making a higher RSI(2) value that is POSITIVE DIVERGENCE... get ready to load the boat!
If a higher price is making a lower RSI(2) value that is NEGATIVE DIVERGENCE... get ready to get your shorts on!
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gocats
22 posts
msg #47155
- Ignore gocats |
9/25/2006 4:00:26 PM
But TRO, how can RSI(2) increase when price is falling?
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alf44
2,025 posts
msg #47158
- Ignore alf44
modified |
9/26/2006 9:37:37 PM
gocats,
Because "MOMENTUM PRECEEDS PRICE" !
It's one of the first tenets of Technical Analysis.
As you study more...it will make more sense !
Regards,
alf44
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