BFreshour
139 posts
msg #39526
- Ignore BFreshour |
12/14/2005 6:07:14 PM
Check out the chart of EYE with ADX(14)...
Notice the divergence between the ADX line and the price? The ADX line has been decreasing while the stock has been going up. This is as clear of an example of divergence as I've ever seen. I'm translating it into this stock has found it's top...
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alf44
2,025 posts
msg #39540
- Ignore alf44 |
12/14/2005 10:09:47 PM
"Notice the divergence between the ADX line and the price...this is as clear of an example of divergence as I've ever seen..."
You've obviously NOT "seen" much "divergence" then !
Also, you are obviously NOT familiar with the ADX indicator !
The ADX is smoothed SO MUCH...it LAGS...uhhh...A LOT !!!
I love ADX...I use ADX religiously...but...I DON'T look for "divergence" with ADX !
Divergence is typically sought and observed in Momentum Indicators !
ADX IS NOT a Momentum Indicator !
I am constantly amazed at the complete ignorance and misunderstanding of technical indicators that some here pretend to understand !
Regards,
alf44
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BFreshour
139 posts
msg #39542
- Ignore BFreshour |
12/14/2005 10:41:08 PM
I'm sorry I can't see what you're typing. You're on ignore. Apparently for good reason after I clicked 'show hidden messages'. A simple explanation would have been incredibly more appropriate than the belittling.
As far divergence with ADX, forget about it. I know what I see in charts and regardless of it not being an oscillater. Please find some charts that display this same type of price/ADX divergence (especially with this high of price slope).
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alf44
2,025 posts
msg #39545
- Ignore alf44 |
12/14/2005 11:11:23 PM
...yeah...isn't the iggy button great ?
Howzit worken fer ya, BFresh ?
The ridiculous public proclamation of..."you are on ignore"...HAS to be the OLDEST and LAMEST message board ploy ever devised !
As soon as someone SHOUTS OUT that ridiculous statement...you can ALWAYS be 100% sure...that they are ALL EARS and are reading every word !
ROFL !!!
And...your last post here...is a perfect case in point !
Regards,
alf44
PS. I meant what I said about you looking for divergence with the ADX ! You're barking up the wrong tree !
PSS. Ignore me at your peril !
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riggs
313 posts
msg #39547
- Ignore riggs |
12/14/2005 11:14:21 PM
Now I've seen everything! LOL!!!! Divergence and ADX? What's next BFreshour? Divergence with Parabolic Sar? You better just stick MACD and Bollinger Bands for a while. But don't worry, you'll catch up. LOL!!!!
THE MIGHTY RIGGS.
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riggs
313 posts
msg #39549
- Ignore riggs |
12/14/2005 11:38:03 PM
Here ya go Bfreshour, I think I found it for you......
THE MIGHTY ONE! LOL.....
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BFreshour
139 posts
msg #39550
- Ignore BFreshour |
12/14/2005 11:44:29 PM
Excerpt from: http://www.forex.com/pdf/pro3.pdf
The ADX is also a measure of the strength of a trend – the higher
the ADX, the stronger the trend. Using the ADX, traders can determine
whether or not there is a trend and thus whether or not to use a trend
following system.
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Excerpt from: http://www.futurespartners.com/articles/edu/dmi.html
I use the DMI mainly to determine the strength of a market trend-either up or down. I look at the ADX line of the DMI. If the ADX line is trading above 30, then the market is in a strong trend. If the ADX line is below 30, it means the trend is not a strong one. Importantly, if the market is in a solid trend and scoring new highs (or lows), and the ADX line shows divergence and turns down, then that is one warning signal that the market trend is losing power and a market top or bottom may be close at hand. Even if the ADX line is well above the 30 level and starts to turn down at the same time the market is trading near new highs or lows, that is also a signal the trend is losing some power. However, as long as the ADX line is above 30, you should still consider a strong trend to be in effect.
---
I think the readers can make their own conclusions. In summary, if the ADX is creating a bearish divergence, it indicates the trend intensity is fading
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riggs
313 posts
msg #39553
- Ignore riggs |
12/15/2005 12:19:01 AM
Bfreshour -
We all know the ABC'S of this simplistic yet useful indicator, but you STILL have not shown us an example of "divergence." But we all know why. IT DOESN'T EXSIST! I don't care what some yahoo says on his website! Hell, THE MIGHTY RIGGS is posting and writing all over the global super-highway, but do buy everything I say?
THERE IS KNOW DIVERGENCE IS ADX! DAH!
RIGGS
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alf44
2,025 posts
msg #39554
- Ignore alf44 |
12/15/2005 12:22:19 AM
"I think the readers can make their own conclusions."
Bfresh, I'm not concerned in the least about "what the readers think" !
I tell it like it is !
If you're looking for what some believe to be the only "leading" indicator" in Technical Analysis...that is "divergence"...you don't look at ADX...PERIOD !
You LOOK at Momentum !
Momentum leads Price !
Short-term Momentum leads Long-term Momentum !
If you REALLY want to study "divergence"...then look at RAW Momentum...not double smoothed LAGGING Trend Indicators like ADX !
Let me say again...I don't look at a single chart without an ADX staring me in the face. I love the ADX indicator ! But I damn sure ain't looking for divergence when I check ADX !
Regards,
alf44
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riggs
313 posts
msg #39555
- Ignore riggs |
12/15/2005 12:25:14 AM
Make that "NO DIVERGENCE IN ADX."
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