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Registered User
Joined: 8/9/2007
Posts: 10
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Hello everyone,
I was wondering if anyone else is following the TSV and MS divergence strategy. I use MS(20) and its 5-day regression along with TSV(20)and its 4-day regression. Are there any suggession that you may have for me? I look for the positive divergence in the MS 5-day and TS 5-day regressions and go long when price regression begins to slope upward.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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seems fine to me. allot of us played heavily with divergences and Ididn't find that they were in and of them selves something to trade. But a divergence is still worth noticing. The thing is they can be so long or short in time span it is difficult to know WHEN the stock will move or HOW the stock will move... So i look for other signs of interest and buyability and then factor in the divergence for my decision making process.
But a person could specifically seek out the divergences. I find that MS is often a stronger divergence in that it is less often divergent from price... where as TSV needs to be pretty strongly divergent for it to matter. UNLESS you are using a very short tem hold then possibly a divergence of a week or so may help you have confidence to put on a very short term trade.
Just MO
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Registered User
Joined: 1/1/2005
Posts: 2,645
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stukov,
The raw data for C, MS, and TSV is:
C0-C1
MS1.0-MS1.1
TSV1
respectively. For determining divergences over some interval, you might consider:
1) Whatever you do to the raw data of one, do the same to the raw data of the other.
3) Do not involve the raw data of any outside the interval of interest.
Please notice that:
1) You are applying different operations to the raw data of each.
2) You are not using the raw data of C outside the interval for C, but you are for MS and TSV.
In addition, it should be noted that the slope of a Linear Regression Line on a Moving Average of TSV1 is not indicative of Share Accumulation as measured by TSV.
One reasonable approach would be to do to the raw data of MS and TSV what you are doing to raw data of C. That is:
1) Plot the raw data of each as a Cumulative Indicator.
2) Place a Linear Regression Line of the same period on each.
3) Compare the sign of the slopes of the LR Lines to determine divergences.
Thanks,
Jim Murphy
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