BFreshour
139 posts
msg #44500
- Ignore BFreshour |
6/1/2006 6:07:57 PM
I'm really starting to study divergences, both standard and hidden. Why would a stock (actually a currency on Forex) display the following trait:
Currency: Higher Lows
CCI(10): Higher Lows
CCI(30): Lower Lows (divergence)
Currency rockets up! Had I been using the longer CCI I would have seen the divergence...
Anyone have any thoughts?
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alf44
2,025 posts
msg #44501
- Ignore alf44 |
6/1/2006 6:19:37 PM
...hmmm that's an interesting CCI combination !
Let's see...where have I seen that before ?
Oh...wait...that's exactly what I use ! LOL
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BFreshour
139 posts
msg #44512
- Ignore BFreshour |
6/1/2006 11:11:16 PM
alf, thanks for your reply. I did get the CCI's from you, simply trying to figure out how the heck you use them and how they detect divergence. My questions is:
IF
PRICE MAKING LOWER LOWS
INDICATOR MAKING HIGHER LOWS
is divergence, wouldn't the opposite be true also?
PRICE MAKING HIGH LOWS
INDICATOR MAKING LOWER LOWS
Not sure, just a question. As I said, I'm just now really starting to learn about divergence and their significance, or lack thereof. I find myself wondering if I'm making up divergence, LOL.
Look at this chart:
http://stockcharts.com/h-sc/ui?s=KGC&p=D&b=5&g=0&id=p05255140446
Notice back February and March, the stock was making lower lows yet CCI(30) was making higher lows. That to me is 'bullish divergence' which explains why the stock shot upward.
Ok, now then, from the $8.77 mark to the most recent low $10.26, the stock makes a higher low, but CCI(30) makes a lower low. I call this 'reverse divergence'and it's also a bullish sign. I maybe wrong, but I'm listening. ;)
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alf44
2,025 posts
msg #44515
- Ignore alf44
modified |
6/1/2006 11:49:59 PM
Bfresh,
I will elaborate on my CCI(10) / CCI(30) combination...if you'd like !
It IS a rather lengthy rationale !
If you DO want me to elaborate...be patient...to do it justice I will need a day or so !
There IS a WEEKEND approaching and I want to give the reply the attention it deserves !!!
GLTY
Regards,
alf44
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BFreshour
139 posts
msg #44517
- Ignore BFreshour |
6/2/2006 12:03:06 AM
alf44, I'm all about learning new stuff... whenever you get time.
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alf44
2,025 posts
msg #44504
- Ignore alf44
modified |
6/2/2006 12:27:02 AM
Bfresh,
First, I'm not sure I neccesarily agree with your "divergence" observations. Typically, a "Bullish Divergence" (wrt, some Momentum Oscillator and in this case a CCI) would be displayed by Price making a Lower Low and the CCI making a Higher Low.
"Momentum preceeds Price !!!"
On the other hand, I think you are seeing the 2 CCIs as "diverging" from one another...and thus using THAT in your "divergence" definition.
Do you see the distinction there ?
Literally speaking...they ARE diverging from one another...Figuratively speaking...that MAY or MAY NOT adhere to the normally recognized definition of true "momentum divergence."
Oh well ! Moving on !
Secondly, you go on to describe this scenario:
Currency: Higher Lows
CCI(10): Higher Lows
CCI(30): Lower Lows (divergence)
If I understand you correctly, I would just say that...
...the shorter term CCI(10) will OF COURSE respond quicker to changes in Price Action...because it is based on a 10 period Average of Typical Price (Typical Price = H+L+C/3) !
...the longer term CCI(30) will OF COURSE lag the CCI(10) and therefore respond less quickly to changes in Price Action...because IT is based on a 30 period Average of Typical Price !!!
Just some thoughts !
Regards,
alf44
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alf44
2,025 posts
msg #44518
- Ignore alf44
modified |
6/2/2006 1:21:30 AM
Bfresh,
Quickly...before you go...look back at my "chart set-up" from your "Favorite Values" thread !
Do you see any connections/similarities/continuities...between my EMA periods and my CCI periods ?
------------------------
In looking at your Kinross Gold Chart (KGC)...I see an EMA(20) and an EMA(50)...yet you also use...a CCI(10) and a CCI(30) !!!
Continuity...my brother !
There MUST be CONTINUITY !!!
Think about it !
Regards,
alf44
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nikoschopen
2,824 posts
msg #44520
- Ignore nikoschopen |
6/2/2006 1:29:59 AM
Alfie,
As a long time CCI user, I'm all ears as well.
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alf44
2,025 posts
msg #44516
- Ignore alf44
modified |
6/2/2006 2:15:00 AM
...OH...I almost forgot...I WILL be smoking pot with Lynard Skinard and doing wine vinyard deals with Motley Crue burnouts...so...better give me SEVERAL "DAZE" to reply !!!
ALSO...I will be peddlin' my "StockFetcher HolyGrail Filters" on eBay for nickles and dimes...and...don't forget...I am also under the "gag restrictions" of my "Gordon Geckoesque" Wall Street employer !
ROFL
Regards,
alf44
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nikoschopen
2,824 posts
msg #44626
- Ignore nikoschopen |
6/5/2006 4:12:58 PM
Making any progress there, Alfie? If you don't mind, I also would like to see ure filter for this setup.
Thx
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