Sensex

Friday, November 13, 2009

Re: [Technical-Investor] Negative divergence ???

 

Hi Kalyan,

The concern is about the direction of the red line in the chart and the red line in the bottom MACD window and how divergent they are.

The Blue line is support line for the uptrend move.

Thanks for your charts. I think they are intraday charts and the lines are drawn for the purpose of entry and exit. From that viewpoint your lines may be right for the strategy you keep in mind.

Mine is for a larger time frame trying to find out whether it would be a trend continuation or trend reversal from the divergence.

Regards,

Jayakrishnan.

--- On Sat, 11/14/09, R Kalyan <kalyanr33@yahoo.in> wrote:

From: R Kalyan <kalyanr33@yahoo.in>
Subject: Re: [Technical-Investor] Negative divergence ???
To: Technical-Investor@yahoogroups.com
Date: Saturday, November 14, 2009, 9:41 AM

 

hi jayakrishnan,

In my view your nifty chart trendline, its wrong .

see this INFOSYSTECH charts i draw like this, any comments from anyone welcome...


kalyan

From: Jayakrishnan <jayakrish2001@ yahoo.com>
To: Technical-Investor@ yahoogroups. com
Sent: Fri, 13 November, 2009 10:23:17 PM
Subject: [Technical-Investor ] Negative divergence ???

 

Hi,

In the price chart of Nifty, the October high is higher than June high.

But in MACD, the October high is much lower than June high.

When the uptrend line is broken (4700-4800) will the price fall in line with MACD?

Is it a Negative Divergence?

Kindly have a look at the chart and correct me if I am wrong in drawing the lines ......

Jayakrishnan.



--- On Thu, 11/12/09, FLOYD JOHNY LEWIS <fjl24@yahoo. com> wrote:

From: FLOYD JOHNY LEWIS <fjl24@yahoo. com>
Subject: Re: [Technical-Investor ] Bollinger Bands Tips.
To: Technical-Investor@ yahoogroups. com
Date: Thursday, November 12, 2009, 11:31 PM

 

Hi Jayakrishnan
 
From the shoes of a newbie learning to trade on intra-day charts - This was a gem of a post.
 
Need to study it in greater details for confirming it though.
 
Would appreciate if you or anyone on this forum can post something similar for the RSI (other than the much spoke about concepts of divergences, overbought, oversold) - something different much in lines with the BB bands observations.
 
Thanks in advance
Best Regards
Floyd


--- On Thu, 11/12/09, Jayakrishnan <jayakrish2001@ yahoo.com> wrote:

From: Jayakrishnan <jayakrish2001@ yahoo.com>
Subject: [Technical-Investor ] Bollinger Bands Tips.
To: Technical-Investor@ yahoogroups. com
Date: Thursday, November 12, 2009, 11:42 AM

 
The key is how the bands react to approaching price action. Here is the magic formula.

We'll use Bullish reversal's and continuations for this example and the opposite is true for bearish reversals or continuations.

1.) Price approaches the upper band and the upper and lower bands remain flat. Reversal - Likely a sharp reversal to the lower band. Because both bands are flat this will likely be short lived.

2.) Price approaches the upper band and the upper band goes up and the lower band is flat or moving up slightly. Continuation - Price will likely continue up slowly for a time.

3.) Price approaches the upper band and the upper band goes up and the lower band goes down. Continuation - Price will likely move up fast and furious. This is the best continuation pattern for the bands. This is a rapid expansion of volatility. You will experience "fake out's" sometimes but most of the time this set-up will produce some good profits when executed properly.

4.) Price approaches the upper band and the upper and lower bands both go down. - Reversal - This is likely to result in a reversal but keep in mind price will likely only make it to the mean, the 21 period moving average with both bands heading down like this. This is a rare occurrence and is typical of a bigger market swing. A transition from Bullish to Bearish conditions.

Your best bet is to pull up 10 charts and spend some time observing how the bands react to approaching price action..

Source: http://tycoonreport .tycoonresearch. com/articles/ 871111841/ bollinger- bands-a-long- overdue-second- date




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