July - so many divergences in one month

Does divergence work or what? Looking over the setups from July 2010 while reviewing your trades is something everyone should do by the way. Daily divergences came thick and fast. They were great for July expiration weekly or monthly options using hourly entries. In the Dow 30 alone there were great setups, some with better clarity than others. Here are a just a few that came to mind. There were many more that Dale picked up on in his sessions.





 

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Comments

  • 8/9/2010 12:35 AM AS wrote:
    How is the tgt line calculated - seems to be acc to the angle of the MACD div line - but is there a specific way to draw it ?
    Reply to this
  • 8/9/2010 9:50 AM steve h wrote:
    AS the target line is a judgment call extrapolated on the price action based on the slope of the MACD divergence. The starting point on the price for the is at the same date as the first point of the MACD divergence, then draw the line with the same slope as the divergence on the MACD.
    Reply to this
  • 8/9/2010 12:15 PM AS wrote:
    The other q would be how to project the timeframe to reach the tgt price (to be able to trade this) ..

    Is there a way to say how long it will take or when a div is not going to work out .. to avoid decay in options
    Reply to this
  • 8/9/2010 1:18 PM steve h wrote:
    good question drop a note to dale on this one
    Reply to this
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