Goldtent TA Paradise

WTIC Daily with divergences…

1. surfchops says:

   May 2, 2015 - 10:27 am at 10:27 am

   I’ve always left the RSI at its default setting of 14 and the divergences are more subtle at that setting but still visible. 5 seems to be more useful. In fact, the RSI 5 picks out every weekly top without a single false signal as anything over 90 on the RSI after it turns down. Bottoms are a little trickier, but any drop below 30 when it subsequently turns up would have made a reasonable buy signal although not always the absolute bottom. RSI 7 seems to work a bit better for bottom signals. I’m using an hourly chart for all these, the 30 min one has too much noise.

   But you’re right, that negative divergence signal is the sell signal and if I’d been paying attention to it I would have sold out on Thursday instead of Tuesday and then waited for an oversold signal to buy back in again next week, instead of buying back in again Friday when I freaked after missing Thursday’s 5% jump. But I guess that’s how we all learn these things. All I really need I guess is a system that gives consistent buy/sell signals on a weekly basis and to stop freaking out about missing something when I’m cashed out.

   I’ve been looking into the DMI, too. Have you found the DMI to have much use? I like the fact that it was developed by a commodities trader and combines crossovers with high/low indicators and particularly a trend measurement. Sometimes I can’t figure out if WTI is trending or not and the ADX offers some objective insight, but I’ve only been using it for a little while so I’m not sure if it’s got any troublesome quirks to it.

2. EagleSeagle says:

   May 3, 2015 - 5:42 am at 5:42 am

   Believe the Forex traders use the ADX; personally, not familiar enough to give you any constructive feedback. grin uses the Vortex http://traderhq.com/trading-indicators/vortex-indicator-ultimate-guide/ to help spot st trends…