dchappy wrote:hehe..there are no dumb questions Phil , we all learn from each other ..
Divergence is very simple , don't let the terms confuse you .
When price makes a higher high ..and the oscilator makes a lower high ..
That is bearish divergence ( sell signal )
When price makes a lower low ..and the oscilator makes a higher low ..
That is bullish divergence ( buy signal )
( hidden or reverse divergence usually occurs in a trend direction rather than a reversal ..but don't even worry about that yet ..learn the regular divergences first )
This indy will draw the divergences for you and help you to see them ..go slow ..take time to let it sink in
Indeed, sounds simple. I need to see it live on a chart over and over again.
But how do you determine which timelength to use for the lines to form? I see that the indicator does this for you but is there a rule or recommendation which length to use? All examples seem to use a lengthy timeframe, is it also possible to use in a shorter timeframe?
Cause i can see over and over again lower lows and higher higs but than again price suddenly moves even further when i demo trade them...
I need to practice and take the time like you said.
So do you consider that the sema in combination with divergence gives you a better edge ?