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Diverging

Stock market  Divergences  Diversification
04/17/2014

Diverging - two trendlines that are moving away from each other. Diverging trendlines create Chart Patterns such as Broadening Tops. Signals that are inconsistent are known as Divergences.


Price Diverging from Chaikin Money Flow
Prices are moving higher and Chaikin Money Flow is moving lower over the past 10 days. Potential shorts.
[type = stock] and [close > yesterday's max(10,close)] and [CMF(20) < yesterday's min(10,CMF(20))] ...

While diverging lower from a 60% or more allocation to stocks has paid off during the last half dozen or so years (S&P 500 at 951 on Aug 7.

Once the diverging trading signal is given, a trader will then wait for the Moving average crossover trading system to give a trading signal in the same direction, if there is a classic bullish divergence in forex trading setup, ...

They start with narrow fluctuations, and then widen out between diverging boundary lines. The pattern, where one of the boundary lines is horizontal, is referred to as a right-angled formation.

This branch is responsible for the provision of assistance to clients who operate in diverging market conditions. The branch employs quantitative instruments and takes the microeconomic climate into consideration.

There are two different forms of this: (1) The pattern emerges normally between two rising (or falling) diverging lines. It is most commonly found in wave 5 positions and occur before a large reversal in trend direction.

With the diverging paths of the United States and emerging Asian economies, the peg might not be as stable as it has been for the past 30 years. Asian economies still are growing while the U.S. continues to stagnate economically.

As a market peaks, the Momentum indicator will climb sharply and then fall off-- diverging from the continued upward or sideways movement of the price.

The banks and housing have been diverging from the rest of the market for some time. These two sectors are still impaired and will remain so no matter how much money the Fed throws at them.

Triangle formations are corrective patterns that are bound by either converging or diverging trend lines. Triangles are made up of 5-waves that move against the trend in a sideways fashion.

The name “Moving Average Convergence Divergence' originated from the fact that the fast exponential moving average is continually converging toward or diverging away from the slow exponential moving average.

As the market moves, moving averages move with it, widening (diverging) when the market is trending and moving closer (converging) when the market is slowing down and possibility of a trend change arise.

Second, the issue's price diverging from the MACD can be taken as the end of the current trend. Third, the MACD rising dramatically can be an indication that the issue is overbought. More about this technical analysis indicator . . .

Figure 8.11: Ideal buying moment after a big correction and SVAPO diverging.

The implication is that by moving in the opposite direction, the indicator (or secondary market or index) is not confirming the price move in the market from which is diverging. Corrections or reversals sometimes result in such circumstances.

This method assumes that market tops are typically identified by a rapid price increase and that market bottoms typically end with rapid price declines. As a market peaks, the Momentum indicator will climb sharply and then fall off diverging from the ...

Some traders, hoping to act early to take advantage of anticipated signals, look at the converging lines to see if they are likely to cross over or if the lines are diverging, reducing the likelihood of a crossover. But this is trading by intuition.

and Divergence (MACD) is the difference between a fast exponential moving average (fast EMA) and a slow exponential moving average (slow EMA). The name was derived from the fact that the fast EMA is continually converging towards and diverging away ...

Essentially, the Balance Line Trades strategy is based on the ‘Chaos’ theory, a study of dynamic behavior that is extremely sensitive to its initial conditions which can produce widely diverging results.

That might seem like a good quality for a company, but a hard-line Catholic might not think that is a good policy. Diverging beliefs would allow one person to invest in Disney, while another would screen it out.

See also: See also: Trend, Trading, Market, Short, Indicator

Stock market  Divergences  Diversification
04/17/2014

 
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