Comments on: AIV – An Example of an Explosive Divergence Resolution http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Corey Rosenbloom http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/comment-page-1/#comment-20870 Corey Rosenbloom Sun, 27 Jan 2008 17:54:26 +0000 http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/#comment-20870 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. 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.

]]> By: Stock Market » AIV – An Example of an Explosive Divergence Resolution http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/comment-page-1/#comment-20703 Stock Market » AIV – An Example of an Explosive Divergence Resolution Sat, 26 Jan 2008 23:55:07 +0000 http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/#comment-20703 [...] Here’s another interesting post I read today by Afraid to Trade.com Blog - Overcoming Stock Market Fears [...] [...] Here’s another interesting post I read today by Afraid to Trade.com Blog – Overcoming Stock Market Fears [...]

]]> By: ainkurn http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/comment-page-1/#comment-20700 ainkurn Sat, 26 Jan 2008 23:47:44 +0000 http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/#comment-20700 very interesting post Corey... do you use these divergences in your normal swing trading arsenal? very interesting post Corey… do you use these divergences in your normal swing trading arsenal?

]]> By: Sue Massey http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/comment-page-1/#comment-20655 Sue Massey Sat, 26 Jan 2008 20:39:15 +0000 http://blog.afraidtotrade.com/aiv-%e2%80%93-an-example-of-an-explosive-divergence-resolution/#comment-20655 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. 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.

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