Hi Matt, on the SPX educational example on hidden divergences
why you did not take (buy) on the August 4th candle? it was higher
than the previous day Doji candle!
Hello cuqui69...as I teach in the tutorials one should examine
the lower time frames for supporting evidence (pattern, positive
divergence, etc). If you go back and look on that date, there was
no such supporting evidence in place on 8/4. Thus, one can
take the higher risk trade but be aware that it may only lead to an
oversold bounce.
Hidden divergence tells you to be on the lookout for possible
reversal but by itself does not provide a trigger (just like common
divergence).
It was stated in the newsletter and in the original post that
the hidden divergence is not your buy trigger, however once you
trigger via something else like the tutorial method or whatever you
use, the hidden divergence in place was a hint that the long trades
in these examples had the potential to be decent bottoms that could
be given more room to run, vs just a short term trade that you are
out in a few days and price goes higher without you - so it's a
nice tool to use in conjunction
Hi Matt, on the SPX
SPX daily educational example
Posted by cuqui69 on 26th of Aug 2014 at 12:23 pm
Hi Matt, on the SPX educational example on hidden divergences why you did not take (buy) on the August 4th candle? it was higher than the previous day Doji candle!
I will appreciate your comments for all members.
Regards
Hello cuqui69...as I teach in
Posted by steve on 26th of Aug 2014 at 12:48 pm
Hello cuqui69...as I teach in the tutorials one should examine the lower time frames for supporting evidence (pattern, positive divergence, etc). If you go back and look on that date, there was no such supporting evidence in place on 8/4. Thus, one can take the higher risk trade but be aware that it may only lead to an oversold bounce.
Hidden divergence tells you to be on the lookout for possible reversal but by itself does not provide a trigger (just like common divergence).
It was stated in the
Posted by matt on 26th of Aug 2014 at 01:07 pm
It was stated in the newsletter and in the original post that the hidden divergence is not your buy trigger, however once you trigger via something else like the tutorial method or whatever you use, the hidden divergence in place was a hint that the long trades in these examples had the potential to be decent bottoms that could be given more room to run, vs just a short term trade that you are out in a few days and price goes higher without you - so it's a nice tool to use in conjunction
hope that makes sense
Thanks Matt Thanks Steve
Posted by cuqui69 on 26th of Aug 2014 at 02:36 pm
Thanks Matt
Thanks Steve