DISQUS

Sue Massey · 1 year ago

I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you.

- Sue.
ainkurn · 1 year ago

very interesting post Corey... do you use these divergences in your normal swing trading arsenal?
Corey Rosenbloom · 1 year ago

Anikurn,

I do use divergences as trade setups, but mostly I use them for daily chart analysis.

To me, divergences indicate a loss of momentum on the side of one market force, or a pick-up (increase) on the other side. Either way, I know that the most recent swing was weaker than the previous swing, and I can at least get a small target by fading the recent weaker swing back to my target of the 20 period MA.

Lengthy (multiple swing) divergences often precede a trend reversal, but not with enough probability to enter a reversal style "large target" trade until the actual reversal is complete.