Which is more profitable: Trend or Divergence trading? - Page 2
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Thread: Which is more profitable: Trend or Divergence trading?

  1. #11
    Quote Originally Posted by ;
    Could you explain this a little bit more please?
    Which exactly are:
    1. Trading pullbacks with the tendency
    2. trade divergences?

    .
    I've suggested this book a few times, but there alot of books out there and I really feel this is the best and most comprehensive on great technical analysis.

    The Master Swing Trader by Alan S. Farley.

    Read it over and over until you just plain know it. Then apply it to your favorite pair until you find the timeless set ups .

    Throw in some Fundimentals for confirmation of leadership and you will be the master. LOL

  2. #12
    Quote Originally Posted by ;
    Can it be easier to make money trading pullbacks together with the trend or to exchange divergences?

    Trading divergences with the trend would seem to be the very best however, in my opinion, the huge majority of great (look great on chart) divergences in different time frames are going against the trend and trying to pick tops and bottoms which is allegedly a loser's game.

    Most men and women imply trading divergences is an excellent way to make money but doing so would violate the axiom of trading with the trend (trend is your friend).

    Thanks for the input.

    Jeff
    I really don't think this can be answered without YOU. Everyones peersonality and texture of this market differs. I've made money both ways but I'm more comfortable in a trend. But, one of my partners will be that a fader and counter trend player and he is wrong. The thing for me is, he does it timing and feel. I just fade when the specialized analysis supports it then with tight stops. Individuals have have gifts and vision. I can not imagine what could have happend to me if I had been told I could just play with fades and if my partner had been told he could just buy pullbacks.

    Another thing that has to be said about this particular to forex is always understanding what market you're in and understanding where you're in the trading range.
    Just know that if we are trending then pull back are the action. If we are in a range afterward divergences plays that coincide with the range or price station are specialized plays.

    We are currently in a wonderful 4hr bear channel on the suisse right now with cellar at 1.2200. Look at this on a 4hr chart with some station lines and you will observe the OPPORTUNITIES.

  3. #13
    You could have your cake and eat it too by trading Hidden Divergence (some traders refer to this as Reverse Divergence). It is divergence that provides you an opportunity.

    The link below is an exellent article describing the idea.

    http://www.trading-naked.com/library...Divergence.pdf

    Phil

  4. #14
    Just came across this thread, it Is kind of hilarious Jacko was being talked to by people when they did Not know who he was lol

  5. #15
    Tendency is supported by me. I think you get trapped into a lot of more push
    fakes with divergence trading.

  6. #16
    Quote Originally Posted by ;
    Just came across this thread, it's sort of funny how folks were talking to Jacko when they didn't understand who he was lol
    I find that funny too but I suspect those sort of things make life colorful. Hehe.

    Isn't divergence is just about price momentum? When price is losing it momentum, we bet our money.

  7. #17
    Eventually some

    Divergence is wonderful!!! Used correctly it has the best opportunity to guarantee you some pips...

    I use Rob Bookers Arizona rules which is a lot concerning divergence... follow the rules about trading divergence... and I seldom lose those transactions... I have much tougher time trading the fad. ( but that's just me )

  8. #18
    Quote Originally Posted by ;
    Just came across this thread, it's kind of funny how individuals were talking to Jacko if they did not understand who he was lol
    You have that right. . .His process that is hedging is one of the very best. I have heard over a package about fad trading .

  9. #19
    Jacko, you are not just a trader, but have an equally great sense of humor. I loved that response! . .lol....keep up the good work and humor....later....vince

  10. #20
    Color me a noob, but is divergence only a pull back to the trend? At least I use it, even in case it breaks the trend it breaks it however they both say the identical thing at that point. HoweverI simply use divergence for trend lines and the time frames for term. Perhaps it's only me but that I use virtually anything that fits in with my system while it is never either or with me.

    When I had to choose one though, it would be the fad. Divergence could be profitable but alone it isn't near as dependable.

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