Thanks. Looks more logical. (learned that divergence line to be drawn on %D curve, support lines helps)
Few questions...
1. I can see negative divergence here. But why you did not draw line on %D for top of candle at 10.35 & 11.35 ? 9.20 high < 10.35 high <11.35 high.
2. Is it okay to consider yesterday's candles while drawing trend line on intraday chart? (as it was gap up today)
3. What is TDST?
Regards
1. At the timeperiods mentioned by you, stoch has not made any peaks or troughs.
Divergence is taken note of, when there are peaks or troughs in stoch. Please go
through this thread, you will get lot of good inputs on this subject.
2. Depends on the behaviour of price. In the instant case, it opened higher above
the immediate PH, the correction has not come below the previous PH, and then
made a higher high. The uptrend was intact upto 11:35. So there is no harm in
including the price levels of yesterday to draw the trendline, since the prices
are following a logical sequence.
3. TDST is a concept introduced by Thomas R DeMark. You can find ST's
useful posts in his other thread - Thoughts on Day Trading.