Divergences – Part of Any Demark Analysisĭivergences appear when the oscillator doesn’t confirm the price movement. In this case, just use the hourly chart showed earlier. They do, mainly when traders use them as part of an integrated multi-timeframe analysis.įor example, your analysis on the daily chart points to a triangle as a continuation pattern. ![]() The daily chart speaks for itself.īut it doesn’t mean the overbought and oversold levels with the DeMarker have no use in trending markets. Or, is in a range.Ī quick look at the more significant timeframes and the range becomes obvious. Of course not! Like any oscillator, overbought and oversold levels work only when a currency pair consolidates. From left to right, all selling and buying instances seem to be profitable!ĭid we find the perfect indicator? The holy grail in technical analysis? Is it working, though? If the technical analysis were so simple, everyone would make money.
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