3 minute 090303
These are not all the trades I see. Just showing
the concept here. CCI is a great indicator. It does a good job with
divergence which are the 5 examples shown.
Question asked was how can one qualify a
divergence trade and there were many good ideas on the Yahoo
Confluence with support/resistance is a very
good confirming factor. Bollinger bands are exactly that, dynamic
Floor Trader Pivots and simple trendlines
(that's on price) are also support/resistance.
On all 5 entries below not only does a BB or
Floor Trader Pivot or both confirm tradable divergence
but taken at the
resistance (band or Pivot)... cyan line you
get a superior entry than if you waited for a price
action entry...yellow line. Give it
try CCI'ers you may like it. Read Jimmer
Anticipation Manifesto if have not already. CCI is
fast...support and resistance can be faster. Price action is the
fastest. Support and resistance may be extra confluence to discern which
CCI twitches to ignore and which to pay attention to.