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Sledgehead

Oscillator Divergence: Don't Make Me Laugh

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Anybody with any positive trading experiences of the above?

I suspect not as signals are not only questionable (like all technicals) but more importantly rarely timely. Neither does it suggest any target, either pricewise or timewise, or any exit strategy.

If you disagree please tell us your time frame and exit strategy.

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Anybody with any positive trading experiences of the above?

I suspect not as signals are not only questionable (like all technicals) but more importantly rarely timely. Neither does it suggest any target, either pricewise or timewise, or any exit strategy.

If you disagree please tell us your time frame and exit strategy.

Yeah oscillators suck really. They don't show you anything you can't see better in the the raw price IMO.

I mean, I've got one bubbling along the bottom of my charts, but I rarely look at it, it's just there.

You could probably develop a methodology around doing the opposite to what is suggested, and get away with it.

Be interested to hear what others say.

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Yeah oscillators suck really. They don't show you anything you can't see better in the the raw price IMO.

I mean, I've got one bubbling along the bottom of my charts, but I rarely look at it, it's just there.

You could probably develop a methodology around doing the opposite to what is suggested, and get away with it.

Be interested to hear what others say.

It's not oscillators per se I dislike. As long as you use good money management (easier said than done I agree), multi-time frame oscillators are a good thing to bear in mind simply because they work well for range bound markets, and th emarket is rangebound 70-80% of th etime.

The problem of course comes during trend moves. And no matter how experienced you are it takes a firm grip to let trend moves sail on by without getting emotionally scarred, even if one can outperform in th emedium term by playing rangebound volatility.

Divergence on the other hand promises the earth. To my mind that is dangerous,

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Oscillator divergence can be dangerous because it is a trend reversal "technique" and invites you to enter against the trend. I agree with you here.

But the reason I think oscillators suck, is that they don't show you anything you cannot see in the price chart anyway.

Divergences show a difference in the momentum of the most recent wave in the direction of the trend, and the one preceding. Yet can we not already see this in the price action? Of course we can.

You say they are good for range bound markets. Yes.

But how do we define a range bound market? By drawing a couple of lines that seem to act as boundaries of a channel of price movement. So first reference is to the raw price movement. If we do that, why then must we then refer to a derivative of price movement, ergo, the oscillator?

Why not take the trades straight off the price chart?

Oscillators are a crutch, a psychological infliction thrust upon us by t/a educators.

That said, they do have one handy use...they are a great tool for software scans (eg metastock or similar) so not totally useless.

Just opinion.

Cheers

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Oscillators are a crutch, a psychological infliction thrust upon us by t/a educators.

That said, they do have one handy use...they are a great tool for software scans (eg metastock or similar) so not totally useless.

Just opinion.

Cheers

And an opinion I would wholeheartedly endorse. I like you Wayne. You clearly know a thing or two.

If you could offer one grain of advice to active traders what would it be?

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Oscillators are very dangerous if you use them on their own. A market can go overbought or oversold, and stay there for a long time.

Get you mind around volume, and other price-less indicators (like COT reports, and evn fundamentals.) More than one tool in your trdaing box is a good idea

Fundamentals!!!!? Clearly the great Dr has lost his mind now.

;)

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If you could offer one grain of advice to active traders what would it be?

I most humbly submit 2 grains.

1/ Understand expectancy and make sure ones method is positive.

2/ Practice money management/position sizing.

This way a traders survival is virtually ensured.

All the rest we can all have fun discussing/arguing about :)

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I most humbly submit 2 grains.

1/ Understand expectancy and make sure ones method is positive.

2/ Practice money management/position sizing.

This way a traders survival is virtually ensured.

All the rest we can all have fun discussing/arguing about :)

Two grains you won't find me arguing with Wayne.

I suppose somewhere within the child in me I was dreaming you might offer a miracle, sure-fire, as-yet-unkown technique to compliment the holes in my own trading (which, if you were that way inclined would probably entail me handing over large amounts of cash to you, based on some statistically derived, cobbled together technical indicator which would then fail spectacularly within the first 12 months). Oh well, guess I'll just have to keep watching the bars!

:lol:

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Two grains you won't find me arguing with Wayne.

I suppose somewhere within the child in me I was dreaming you might offer a miracle, sure-fire, as-yet-unkown technique to compliment the holes in my own trading (which, if you were that way inclined would probably entail me handing over large amounts of cash to you, based on some statistically derived, cobbled together technical indicator which would then fail spectacularly within the first 12 months). Oh well, guess I'll just have to keep watching the bars!

:lol:

:lol::lol::lol:"a miracle, sure-fire, as-yet-unkown technique to compliment the holes in my own trading"

That search is endless...we all know its not there, but every single one of us keep looking for it :blink:

Or is it?? :lol::lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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