Technicians use it to highlight possible corrective (continuation) or technical adjustment behaviour within a trend move.
It manifests itself when in a downtrend, price prints a lower high, whilst the oscillator of your choice prints a higher high (more often than not, extending into an overbought grid on the indicator).
Opposite for uptrend. Price prints a higher low, whilst the oscillator prints a lower low.
As with any type of price indicator, you need to be acutely aware of what is causing the price movement & where on the technical grid price is printing such behaviour.
It all revolves around 'cause & effect'
It manifests itself when in a downtrend, price prints a lower high, whilst the oscillator of your choice prints a higher high (more often than not, extending into an overbought grid on the indicator).
Opposite for uptrend. Price prints a higher low, whilst the oscillator prints a lower low.
As with any type of price indicator, you need to be acutely aware of what is causing the price movement & where on the technical grid price is printing such behaviour.
It all revolves around 'cause & effect'
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Better still, here ya go look....some dame talking up a storm about the very subject with a ton of text & more pictures to mull over.
If you tap the subject matter into your browser, you'll generally get bombarded with all kinds of weird & wonderful material sloshing around out there
You might want to blank out the dodgy looking character holding the apple....he could well scupper your powers of concentration lurking at various corners of the article. Creepy little fella huh?
http://www.trading-naked.com/library/Hidden_Divergence.pdf
If you tap the subject matter into your browser, you'll generally get bombarded with all kinds of weird & wonderful material sloshing around out there
You might want to blank out the dodgy looking character holding the apple....he could well scupper your powers of concentration lurking at various corners of the article. Creepy little fella huh?
http://www.trading-naked.com/library/Hidden_Divergence.pdf
Better still, here ya go look....some dame talking up a storm about the very subject with a ton of text & more pictures to mull over.
If you tap the subject matter into your browser, you'll generally get bombarded with all kinds of weird & wonderful material sloshing around out there
You might want to blank out the dodgy looking character holding the apple....he could well scupper your powers of concentration lurking at various corners of the article. Creepy little fella huh?
http://www.trading-naked.com/library/Hidden_Divergence.pdf
Ever heard of T2WDivergence indicator for Trade Station v8.3 ???
I think you're directing your question at the wrong poster.
I was just tossing Bertie a small package of info regards his query.
For the life of me, I can't even begin to imagine what use an indicator wired into a potential divergence play would offer someone that the human eye couldn't fathom?!
It's not like a divergence set-up is a head scratching, mind boggling scenario to spot or work thru.
Or are you referring to something outside that remit?
I was just tossing Bertie a small package of info regards his query.
For the life of me, I can't even begin to imagine what use an indicator wired into a potential divergence play would offer someone that the human eye couldn't fathom?!
It's not like a divergence set-up is a head scratching, mind boggling scenario to spot or work thru.
Or are you referring to something outside that remit?
I am just posting a question for anyone to respond.. T2WDivergence indicators for TS v8.3 ??
