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Thank you all who voted for me in Big Mike's contest. I started this thread with the hope that I could help just 1 trader become a better trader.
As of the last check I made on the voting last night to think that what I have presented here in the forum has in some way affected 82 traders is very gratifying to me.
I will continue the thread just like I have been trying to make us all better traders and still reaching out to the traders that have not found this yet.
I still have trouble discerning those trigger lines, and whether or not to take a trade. I didn't take the trade at 6:50 cst because the trigger lines looked too strong to me, and then the trade worked. I also didn't take the trade at 5:38 because the stochastics were sitting at around 50 at the time, and that trade worked, although it took awhile. It has been a frustrating morning so far for me.
One thing i notice among the many examples is that when you evaluate a divergence by tracing a trend line on the highest or lowest peaks made on price and you compare the slope of this line versus the slope of the line on the stochastic then i think this may conduct to a false conclusion or a wrong perception. You may think there is a divergence while there is none because the stochastic is evaluated on the close of each bar. If unsure, the easiest way to avoid this effect is by showing price as a line based on the close or to draw your trend line by linking the closes of the related peaks.
EDIT: I have checked all the options in the stochastic indicator and it does not seem to react whether i use the close/High/Low or any of the other options available. I find it strange not to see any difference. Maybe the stochastic indicator does not really use these options even though they are there.
EDIT: if we look at sambar's example where he sees a hidden divergence i see price making HH and the stochastic making HH so to me this is not a hidden divergence if i consider the close.
LOL..... after reading your post, I had looked to see if the stock stoch indie offered a average, or low, or high or any option for calculation other than last.
I see it doesn't. I already modified the stoch indie to add a midline as I was tired of re adding it. I might as well add in the other options to calculate based off of other calculation options.
