Do Or Die

Using S/R levels for execution, as mentioned I do not believe in divergence types hidden/reverse etc. If you see my definition, a divergence is a divergence, as simple as that. LOL, no diversification sought at this stage. If I post just one signal at a time I run the risk of being called too selective and hiding something. This is a discussion forum; everyone is free to pick what they like, ditch what they feel useless, and if possible try improve the original strat in a definite manner. (Improvement does not means ditching the original premise)

Stopped out SLB(68.00), FLS(99.80)

Update: Open Positions: -SLB(75.16), +PCP(155.66), -ABT(54.65), -FDX(84.50), -FLS(97.46) Closed Positions: DGX(+2.3%), AET(+3.3%), ETN(+8.2%), EOG (+0.8%), CMS(+0.6%), NSC(+1.6%), VRSN(-0.7%), FDX(+1.5%) (Bought after gap up) RL(-2.5%), WLP(-1.8%), ZION(-1.3%), EXPD(-1.5%), HES(-2.1%)

All Long positions stopped out, except PCP.

Read here: http://www.traderslaboratory.com/forums/technical-analysis/11510-divergence-study-discussion.html#post134430 Let me know which questions are yet unanswered.

Hi, This thread will serve the purpose of discussion for live signals posted in Divergence Trading Strategy- Advanced. I have mentioned all of this before... but I understand the main thread is messed up so here is the recap. Internal Relative Strength is defined as the price of a stock compared to it's prices n days back. For example if the stock is trading above it's range over last 10 days, it is relatively stronger than a stock which is trading in the middle of it's past 10 days range. It is measured by RSI, Stochastics, Aroon, ADX etc. This strategy uses RSI(10). Negative Divergence: Is defined as the decrease in internal relative strength of a stock, while the price apparently increases. Positive Divergence: Is defines as the increase in internal relative strength of a stock, while the price apparently decreases. Support/Resistance: Any of the popular anchor points like recent pivot high(low), open price of day, high(low) of day, confluence of pivots levels on shorter time frame. Example Charts: http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-10.html#post133963 http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-10.html#post133966 http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced.html Important: Please make sure you are familiar with Concepts in Technical Analysis before reading further. Strategy rules: All trades are taken on daily, for convenient discussion. I will automate posting of intraday trade signals via twitter API when the strategy itself is 100% automated. Signal: A signal is generated when a positive/negative divergence is seen. Prevalent Trend: Is determined by the same oscillator used for generating divergence signals. See here on determining trend using RSI. Entry: Once a signal is generated, look for an entry for next 10 bars or so, until the price movement confirms the direction of signal. Trades are executed when the stock touches/breaks the nearest supp/ress. Exit/Stop: Depends upon stock's volatility and how stronger the prevalent trend is. For example stops will be tighter in range-bound market vs. when the trend greatly favors your position Strength: Enter fast and Exit fast, once in a position, hold as long your minimum risk/reward is maintained AND the prevalent trend favors your position. For example, I exited many positions within couple of days because stop was hit; holding SLB since 7/12 (currently ninth day) because its trend favors my position. Costliest Mistake: Do not buy after big gap up, and do not short after big gap down. Similarly in intraday do not buy (short) after a spike up (down). See attached charts for current running trade on FLS. Many members were confused by what the strategy actually does, because the original thread was flooded by opinions from other 'professional' with apparently 'superior' trading strategies. The fact that these members never posted live trades/signals is left upon the readers to decide about their credibility.

Short FLS(97.46) stop 99.80

Shorts triggered ABT(54.65), FDX(84.50) Stopped out HES (53.60) Edit: stop HOD for abt, fdx

You may also like to skim through Evidence Based TA (http://www.traderslaboratory.com/forums/books/3778-evidence-based-technical-analysis.html), delivers some solid concepts on system design.

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Guys, he is just a vendor alias, see this post: http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-2.html#post133480 Some calling himself a professional and *willing* to teach others, whose trading style changes every six months. Added more posts below.

Some people may like to check: The Heck About Trading Psychology I do not really like any of the 'psychological' coach.

Thanks for confirming, that is the classical definition. Many people use the regression line slope also.

Terminology like 'expectancy', 'edge', 'profit factor' can be very misleading for new traders. The probabilities in market, whether they are about a pattern or setup or strategy, are NOT definite- they are estimation only. (in practice they are not even estimation, turn out to be wild guesses). The method of new trader will be constantly evolving, every 50 trades or so. His method will evolve irrespective he is making money or losing, simply because he will be learning a lot about market behavior and trading in general. How do you expect a person to *statistically* define 'edge' in such situation. I agree with MM that trading a setup religiously is the sure way to hell for a beginner trader.

LOL, just curious as onesmith, how does the software actually calculates slope.

Hi, I've written pages of explanation for all this using charts, examples and what not. In the real world people have have monster ego, they will hate if someone is using a tool profitably via which they have lost money. Edit: You might also remember whose d*** is bigger contest, which brought a major change in TL.

LOL, it's all good. I track your thread as well, will make a similar move in future (it's possible to share with people only as much as they deserve).

Bot Added HES(54.75) I made a mistake in yesterday scan, these stocks were supposed to be bought yesterday mid-day, nevermind.

Bot RL(141.10), WLP(65.10), ZION(15.00), EXPD(40.80)

Hi, Please refer the title 'Trading Regime Analysis Using RSI' as mentioned above. RSI(10) is used, looking back upto 25 bars of history only to decide whether the trend is upside, downside or ranging. Cheers.

Update: Exit FDX(82.40), Enter Long PCP(155.66) Open Positions: -SLB, +PCP Closed Positions: DGX(+2.3%), AET(+3.3%), ETN(+8.2%), EOG (+0.8%), CMS(+0.6%), NSC(+1.6%), VRSN(-0.7%), FDX(+1.5%) If you want to follow the journal, these are the only posts relevant so far: http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced.html#post133326 http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-10.html#post133963 http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-10.html#post133966 Divergence Trading Strategy- Advanced - Page 3 - Traders Laboratory Forums Divergence Trading Strategy- Advanced - Page 8 - Traders Laboratory Forums http://www.traderslaboratory.com/forums/technical-analysis/11438-divergence-trading-strategy-advanced-9.html#post133835

I would also like you to re-think about what's advance. Gmail is considered more advanced than Yahoo mail because it is simpler and more intuitive to use (and of course better features). It is NOT considered advanced because it has more fancy buttons. Similarly in trading you do not make an strategy advance by adding rules! it can be made advanced by crossing off the redundant rules. Ask any seasoned trader and he will tell you that the most robust strategies are those which are based on few and independent premise.

I'm using RSI to as measure of internal relative strenght. So if I enter a trade the divergence can be seen using RSI :doh: Did you note that I'm entering just at the time the market turns around. As mentioned in first post, I can enter with small stop, so I can exit earlier (with profit)! See the updated chart, there's nothing special about it Now you are talking the language of a newbie (plz don't mind). Just because MA crossovers are stereotyped you assume professional traders do not use it. See related thread http://www.traderslaboratory.com/forums/technical-analysis/11081-more-trustworthy-average-ema-ma-vwap-2.html#post132075 Well, maybe you are taught so in vendor seminars, or arrived to that conclusion by reading SSRN papers, by I would disagree I'll let me PnL speak. So maybe just stop bashing and let me log live trades. Well, I don't have much to say

This is how a classic divergence is detected: Now see below for how the 'advanced divergence is detected. To copy from first post: "BTW, the 'advanced' word in title is more of a cliche; the strategy is actually basic (conceptual); i.e. mark opportunity when a stock seems to move lower while it's internal relative strength actually increases. Earlier detection of RSI divergence also helps in keeping tighter stop. So it helps in both reducing the risk and maximizing potential reward. I use the most recent pivot high, bar high or support as stop loss. " I'm now feeling confused as to what I will show on a chart when entering a stock... just RSI with trend line? This strategy is surprisingly simple.

Ohh yes, visual depiction is far more appealing. I will mark the charts with comments and post in few hours.