On Sat, Jun 12, 2010 at 5:26 PM, Richard <[email protected]> wrote:
> > > Hello Howard, > > On the more complex side I tried and failed to define one of Jake > Bernstein's divergence approaches which could be summarized as follows; > - find new peak (last high after price retraced say 4%) > - find the value of the indicator (RSI etc) – valuewhen (new $ peak) > - find previous (second to last) peak on the indicator > - find the price valuewhen(indicator 2nd peak) > - find the last low on the indicator (between last peak and 2nd peak) > > The above is the setup and needs to occur within 28 price bars. > The trigger (Buy) will be if the price closes below its 2nd peak value or > the indicator moves (closes) below its last low value (last low defined as a > low between last peak and 2nd peak). > That description is pretty close but still to vague and imprecise to be trading with confidence or written in a software. I'd suggest you attend one of Bernstein's events (real or Web) and read his "30 days" book -- it includes a complete "cook book" definition of his divergence method and a trading system to apply it. I've been using this system only since January, but the results are lucrative.
