iCharts Discussions

[mamtagupta]

Dear all members,
Please get in touch if you play the market based on divergences.
We can exchange the ideas for better.

[Transcap69]

My Idea about playing the market intraday using divergences

http://www.icharts.in/forum/viewtopic,t,4728.html#70735
Amit

[diamondheart]

divergence is great

[umesh1]

MamtaGupta
If you can Add a bit more on Trading Divergence in short Time Frames(intra-day) ,I would definitely like to learn the concept if you have been practicing with some examples.Thanks in advance
Regards
Umesh Jagasia

[newinvestor]

[apka]

@newinvestor

glad to see someone else shares my view about divergences as being powerful!

Like you said 5min tends to be unreliable compared to longer time frames.

But if you check all timeframes 5-60min, draw trendlines and in accordance to the trend thats where nifty / stocks support resistence lie, you can trade both intraday and positional. I do the same.

[newinvestor]

But if you check all timeframes 5-60min, draw trendlines and in accordance to the trend thats where nifty / stocks support resistence lie, you can trade both intraday and positional. I do the same.[/quote][i]

Hi apka. Can you pls clarify a bit more on what you said above

[anusantosh]

Lost lot of money while trading with divergences. So, as like any other methods initially this will bring profits and confidence. But failures will wipe out profits.

But still I trade with divergences only and making smart profits! What I learned after losing big chunk of money is if we trade in shorter time frame like 5 min we lose trade.

Reasons be...

In short time market runs normally volatile it goes after every news, global mkts, excitements, sentiments etc etc. So, these divergences may not work. If we trade 5min divergence at least we should know the trend of 30 min TF and it is unreliable in shorter time frames like 5-30 min.

For example, many times we see Bata India charts shows multiple divergences on 5 min chart and it violates every time your buy/sell price in half - one hour.

Divergences are the best and powerful signals to trade no doubt. Use it on daily charts only after you confirm the trend from weekly chart. If weekly is up and you got daily bullish divergence then go long by making precise entry MAY BE with 5 min chart on particular day you found divergence. Plenty of room available to exit if something goes against your trade as the days passing. If trend is very strong your chart may show bearish divergences after some time where you can exit your longs.

This may take few days to weeks but profits will be growing. The money made with this is much more when you glued into 5 min divergences losing 7 trades and profiting 3 trades and over all in to losses.

[sonila]

[apka]

@ sonila & newinvestor

Ill post a chart when it comes and I trade. Fridays fall has made all 5 min 15 min 30min candles small like an ant .. will take a week or 2 to smudge.

[sonila]

[saumya12]

[apka]

heres a chart for u, see nifty falling gradually on 5min chart and the indicators going up slowly, and since nifty was near its support 5630 zone.. covering / buying emerged.

[apka]

heres another chart for you. When such pos divergence carrys in 2-3 indicators on 5min chart for 2 days and it keeps rising, 90% of the time on 3rd day it results in covering / buying as in DOW today and Nifty today.

Was this the type of divergences mamta and others were talking about here?

I take into consideration the support zones and resistences before entering, 5630-5640 for nifty was support zone and tested for several 5min together. Apart from that Dow, European markets and EURO currency all charts were having positive divergences. When all of them have it, more the reason to go long.

[apka]

todays dow 30min chart :

it has given a buying chance at 13300 about. see the chart. lets see whether it gives 30-40 points or not from here on long side.

in the same chart between sept 26 - 28 u can see a similar instance of sloping index but indicators rising.