Dr Alexander Elder
What you see on the surface is often deceptive – in trading, as well as
in life. A trend may appear strong, while below the surface it may be
weak and ready to reverse.
This book will teach you to use indicators for measuring the internal power of trends. When they confirm an uptrend, they tell you it’s OK to hold or add to long positions. At other times they signal that the trend is suspect: it is better to exit, take profits, and even consider switching from long to short or vice versa.
A divergence is a disagreement between the patterns of indicators and prices. You’ll find bullish divergences near market bottoms and bearish divergences near market tops. Some traders use these important terms loosely – this book will make them very clear by guiding you through several Reader Exercises. It will show you how to ride price trends with greater confidence and recognize upcoming reversals before they hit the crowd.
- How to Work with This Book
- Free Updates & the Honor Code
- Review of Tools
- A Bullish Divergence: A Basic Definition
- What is NOT a Bullish Divergence
- A Bearish Divergence: A Basic Definition
- What is NOT a Bearish Divergence
- Reader Exercises
- Entries, Stops, and Profit Targets
- Additional Points on Divergences
- Divergences in Other Indicators
- Divergences in Multiple Timeframes
- Scanning for Divergences
- The Next Step: MACD Semi-Automatic
- About the Author