Registered User
Joined: 12/7/2004
Posts: 22
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Hi: There's so much talk about divergences in price versus indicators like Stochastics, MACD, TSV, MS etc. If I wanted to sort to find, for example, a stock with a great deal of positive divergence versus MACD, how would I do that? Which indicator would I most want to look at in this light? Thanks.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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There is really no "right" answer to this. If one indicator was truly better (empirically so) then it would be the only one everyone would use. The reason that many indicators are available is because different people find more value in some than others. I believe everyone needs to find indicators that they understand, have played with, and make sense to them. Once you find these sets of indicators you should study charts... hundreds, even thousands, of charts.
I believe over time you will gain a comfort level with the indicators based on your understanding and practice that will, in turn, manifest into more success in finding strength and weakness in charts.
Here are some links to explore on the indicators you mentioned. The last two are to video's by Peter Worden and a forum for analysis by Don and Peter Worden. Look to your Worden Reports and Worden notes for daily lessons to help in your journey.
Remember, two people can look at the same chart and see two different things. Good thing, because if everyone agreed who would we trade with?
http://www.investopedia.com/articles/technical/073001.asp
http://www.investopedia.com/articles/technical/082701.asp
http://www.investopedia.com/articles/technical/091001.asp
http://www.worden.com/XMLPage.aspx?xmlpage=videopage
http://www.worden.com/training/default.aspx?g=topics&f=16
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here are some more!
http://www.worden.com/training/default.aspx?g=posts&t=141
http://www.worden.com/training/default.aspx?g=posts&t=134
http://www.worden.com/training/default.aspx?g=posts&t=117
- Craig
Here to Help!
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