Trading volumeis one simple example of an indicator that can produce divergences. In this case, the price will create a divergence when moving in a direction that goes against the trading volume. For example, if the price is moving up with decreasing volume, there is divergence. While divergen...
With the S&P 500 enjoying its ninth year of outperformance versus the rest of the world and trading at a record premium on a price-to-book basis,5relative value exists overseas. Although it remains our view that it is premature to commit funds to the emerging markets, we believe opportunitie...
After you see the Hidden Divergence that matches the larger trend, you can make a proper trading plan. After seeing the Hidden Divergence, place the stop loss just beyond the last price swing. In the case of a Bullish Hidden Divergence (HD+), place the stop loss at the last price floor...
Trading ranges and whipsaws.When a trend weakens and price fluctuates in a range between support and resistance levels, the MACD line may cross the signal line frequently in a back-and-forth manner. This is where you might avoid taking any positions; otherwise, you risk getting “whipsawed” ...