Re: Divergence on Daily Time Frame
Thank you very much AW10, Can you also please provide me with some understanding, link or example of Convergence.
If you remember the definition of divergence then coming out with convergence is not difficult. Plz stretch yourself a bit, and I am sure u will be able to find that as well.
When u don't see divergence, then ther is potential that u might see convergence.
Look at the left side of the chart that u posted. In Nov, there was small pause in Stoch around 60 level, and then it broke-out from that on stoch. at the same time price also made new high..
In Dec starting, again there was breakout in stoch as well as in price.
Only in Jan, we see some divergence coming in.
In Early March, prev div that we saw in Feb got negated, price made new high and so the stoch.. and mkt flew to new high after that.
Hope you can catch some pointers from this and bulid further on it .
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as mentioned by Raunak, just pick up one system and master it. If you want to trade Stoch, then don't miss the thread by Smart_trade on trading oscillator and continuation of that by raghavcc.
happy trading