Archived: RSI Divergence Indicator

[BenTen]

@NS78-TOS Unfortunately that's not possible

 

[NS78-TOS]

Got it, thanks for your fast reply!

 

[Charlie.mp3]

I'm still a bit confused on the proper use of the indicator, the tops and bottoms that are connected by the dotted line, do we simply determine bullish or bearish if the either top or bottom dotted line is pointing upwards or downwards? Or is there a different meaning for top and bottom connected dotted lines?

 

[MBF]

I'm still a bit confused on the proper use of the indicator, the tops and bottoms that are connected by the dotted line, do we simply determine bullish or bearish if the either top or bottom dotted line is pointing upwards or downwards? Or is there a different meaning for top and bottom connected dotted lines?

Heeey @Charlie.mp3 newbie here also. Divergence can be tricky. There are bottom, top and hidden divergences and it needs to be studied. This indi will only confuse you if you don’t yet know how to decipher divergence. Try to google it. I don’t know how new you are but when I started over a year ago, the first book(s) I read were all of Elders books. They were simple and to the point. I read about 35 to 38 other books throughout the year( some I had to return to library, some I bought). The library ones that I didn’t finish are in my Trading library file and I marked which chapters I had stopped reading so when I get them back I can continue. I have books and books of notes. I had to read about divergence several times over and I have a cheat illustration on my wall eraser board because I still get lost sometimes.
The more you see your cheat sheets and use them during trading hours the easier they get!
Good luck and howdy!

 

[Charlie.mp3]

Heeey @Charlie.mp3 newbie here also. Divergence can be tricky. There are bottom, top and hidden divergences and it needs to be studied. This indi will only confuse you if you don’t yet know how to decipher divergence. Try to google it. I don’t know how new you are but when I started over a year ago, the first book(s) I read were all of Elders books. They were simple and to the point. I read about 35 to 38 other books throughout the year( some I had to return to library, some I bought). The library ones that I didn’t finish are in my Trading library file and I marked which chapters I had stopped reading so when I get them back I can continue. I have books and books of notes. I had to read about divergence several times over and I have a cheat illustration on my wall eraser board because I still get lost sometimes.
The more you see your cheat sheets and use them during trading hours the easier they get!
Good luck and howdy!

Thank you, yeah I have not done much reading on the topic. Mostly I've followed a couple of gurus here and there and I've watched tons of video. But it's a good point on the books, I don't know why I haven't read more. What are the best ones you can recommend?

Thanks

 

[MBF]

Thank you, yeah I have not done much reading on the topic. Mostly I've followed a couple of gurus here and there and I've watched tons of video. But it's a good point on the books, I don't know why I haven't read more. What are the best ones you can recommend?

Thanks

I started with books. I don't trust people so the guru route wouldnt have worked for me. Actually thats a lie. I looked into Sykes at the very beginning because I think penny stocks are what a lot of new people hear about at first. After that I was convinced everyone was out to get me and I stayed away. He was interesting but... you just get a feeling, or I did. I stopped there. I found a real group that actually taught you and did not throw out trades in their room. They were super cheap. I think they've raised it but they are getting popular. Still not ridiculous at all.
I didn't know anything about options and that is my main squeeze. I didn't even trade stocks. I should probably get on that. I skipped right to options.
Reading is great. You really have to be into it, but reading gets you used to the vernacular of finance and trading, however doing it is something altogether "other".
Here are some people I love.
Video; Linda Raschke, Adam Grimes has a really great free course on learning to trade, Bullish Bears,
that's plenty for now. Adam's course is intensive, you can download his workbook.
Books; There are A LOT of books I enjoyed but the ones that stick out right this second are
Alexander Elder's (he has a few), Adam Grimes, The Art and Science of Tech Analysis
(he has a workbook you can buy to go with his book) I couldn't afford his book but I borrowed it from the library and bought the workbook.
Schwager and Prings Technical Analysis books (two different authors and books)
I found Raschke's Street Smarts for cheap at a used book store (I dont think they realized what they had, lol!)
All the Market Wizard books
After I made my first real trade and nearly peeing my ****s I bought Trading in the Zone
Lots of Option books
That should do you for a while. I'm sure others will chime in!
Keep at it, don't allow yourself to walk away. Just be patient.

 

[MBF]

Oh! I forgot. The very first book I ever read was Nisons Candlestick Course, which i downloaded off the internet and put in a binder. It had a gazzilion pages!

 

[Charlie.mp3]

Oh! I forgot. The very first book I ever read was Nisons Candlestick Course, which i downloaded off the internet and put in a binder. It had a gazzilion pages!

Wow, hey that's a great list. Thanks for taking the time to list these out. I'll start checking them out tonight.

Yup I'm in this for the long run, I've tried other things and failed plenty in the past, so I'm going to stick with this till I make it, or till I'm broke! Lol

Thanks again.

 

[MBF]

@Charlie.mp3 You have to read, you can't do gurus. The reason I listen to some gurus is to look up what they're trying to say. Use discretion. Look up the gurus, listen to the way they talk. If they make it sound like its easy peasy be suspect.
There are good ones out there but you have to listen to the language they use while trying to get your attention. Just use them as a dictionary or trading encyclopedia and do your own research on what they are saying. Know what youre doing before you follow them if you feel the need for that crutch, which is fine, just be very very careful.
You have to do things on your own in your own time. I'm terrible at math. Options have a massive amount of those number thingys everywhere. There were days when I felt totally lost and frustrated where sometimes, well often, would bring me to tears and still do sometimes. I'm slow because of it but little by little I grasp it. I still feel like I'm blowing in the wind but it is what it is and I don't want to give up because I am seeing strides. It's just really hard and you have to face that and power through.
Just watch those gurus! Don't get swept away by them and find good ones.

 

[Charlie.mp3]

@Charlie.mp3 You have to read, you can't do gurus. The reason I listen to some gurus is to look up what they're trying to say. Use discretion. Look up the gurus, listen to the way they talk. If they make it sound like its easy peasy be suspect.
There are good ones out there but you have to listen to the language they use while trying to get your attention. Just use them as a dictionary or trading encyclopedia and do your own research on what they are saying. Know what youre doing before you follow them if you feel the need for that crutch, which is fine, just be very very careful.
You have to do things on your own in your own time. I'm terrible at math. Options have a massive amount of those number thingys everywhere. There were days when I felt totally lost and frustrated where sometimes, well often, would bring me to tears and still do sometimes. I'm slow because of it but little by little I grasp it. I still feel like I'm blowing in the wind but it is what it is and I don't want to give up because I am seeing strides. It's just really hard and you have to face that and power through.
Just watch those gurus! Don't get swept away by them and find good ones.

Thanks again, I've been listening to Linda Raschke since last night! Looking at the others this weekend.

 

[markos]

@Charlie.mp3 You have to read, you can't do gurus. The reason I listen to some gurus is to look up what they're trying to say. Use discretion. Look up the gurus, listen to the way they talk. If they make it sound like its easy peasy be suspect.
There are good ones out there but you have to listen to the language they use while trying to get your attention. Just use them as a dictionary or trading encyclopedia and do your own research on what they are saying. Know what youre doing before you follow them if you feel the need for that crutch, which is fine, just be very very careful.
You have to do things on your own in your own time. I'm terrible at math. Options have a massive amount of those number thingys everywhere. There were days when I felt totally lost and frustrated where sometimes, well often, would bring me to tears and still do sometimes. I'm slow because of it but little by little I grasp it. I still feel like I'm blowing in the wind but it is what it is and I don't want to give up because I am seeing strides. It's just really hard and you have to face that and power through.
Just watch those gurus! Don't get swept away by them and find good ones.

Excellent post, Grasshopper! I like it.

 

[MBF]

Thanks again, I've been listening to Linda Raschke since last night! Looking at the others this weekend.

I like her, she loves to explain her thinking. She is what I can hopefully learn when im ready to long term trade and or swing. She trades mostly Futures. That word scares me, let alone trading it.

 

[markos]

I started with books. I don't trust people so the guru route wouldnt have worked for me. Actually thats a lie. I looked into Sykes at the very beginning because I think penny stocks are what a lot of new people hear about at first. After that I was convinced everyone was out to get me and I stayed away. He was interesting but... you just get a feeling, or I did. I stopped there. I found a real group that actually taught you and did not throw out trades in their room. They were super cheap. I think they've raised it but they are getting popular. Still not ridiculous at all.
I didn't know anything about options and that is my main squeeze. I didn't even trade stocks. I should probably get on that. I skipped right to options.
Reading is great. You really have to be into it, but reading gets you used to the vernacular of finance and trading, however doing it is something altogether "other".
Here are some people I love.
Video; Linda Raschke, Adam Grimes has a really great free course on learning to trade, Bullish Bears,
that's plenty for now. Adam's course is intensive, you can download his workbook.
Books; There are A LOT of books I enjoyed but the ones that stick out right this second are
Alexander Elder's (he has a few), Adam Grimes, The Art and Science of Tech Analysis
(he has a workbook you can buy to go with his book) I couldn't afford his book but I borrowed it from the library and bought the workbook.
Schwager and Prings Technical Analysis books (two different authors and books)
I found Raschke's Street Smarts for cheap at a used book store (I dont think they realized what they had, lol!)
All the Market Wizard books
After I made my first real trade and nearly peeing my ****s I bought Trading in the Zone
Lots of Option books
That should do you for a while. I'm sure others will chime in!
Keep at it, don't allow yourself to walk away. Just be patient.

So, you missed the books by William O'Neill? How to make Money in Stocks is a classic. A very good list nonetheless.

 

[MBF]

or or

 

[MBF]

So, you missed the books by William O'Neill? How to make Money in Stocks is a classic. A very good list nonetheless.

Oh no, I read that one. I think I read two different IBD ones. Library books.
I should buy that copy on AMZN for 2 bucks so I have it.
What else @markos ?

 

[MBF]

or or

oh thats a cricket, they dont have a grasshoppa!

 

[markos]

Oh no, I read that one. I think I read two different IBD ones. Library books.
I should buy that copy on AMZN for 2 bucks so I have it.
What else @markos ?

Someday I'll have to put up a top 5 list. Just need to be sure the time frames are correct. Anything by Elder or Van Tharp is a good start... yes you should have a copy of the 1st edition and use it as a "point of view" reference.

 

[MBF]

Someday I'll have to put up a top 5 list. Just need to be sure the time frames are correct. Anything by Elder or Van Tharp is a good start... yes you should have a copy of the 1st edition and use it as a "point of view" reference.

Van Tharp? That’s a new one! I’ll go search for it.
Any good day trading ones?
You know these trading books would do better if they had a decent cover. Some of these covers are so hokey. Blah. Of course I’m sure they’re doing fine.
Aggravating day. Gave back 1/3 of my morning profits. Ugh!!! So frustrating! I just HAD to take up trading during this -hitstorm of a market.

 

[MBF]

@markos ”Someday I'll have to put up a top 5 list” no daaaay like tooodaaaaay.

 

[JBTrades]

Thanks again, I've been listening to Linda Raschke since last night! Looking at the others this weekend.

I also jumped straight into trading options. Check out Skyview Trading on YouTube, they explain it very simply.