Quote Originally Posted by jamesmarkof View Post
Makes sense. Thank you.

When you say "I seldom use the divergence analysis anymore in my daily trading", do you mean you seldom use it when you day trade? In other words, do you still use it for swing trading? Or do you just mean in general the divergence analysis does not work as well any more?
In the past few years, I have been only using Active Boundaries/LER combination or the Supply/LER combination.

One disadvatnage of the divergence analysis is that one needs to tune the divergence to the volatility difference between price and volume. This is a difficult process that is indeed non-reliable and should be manually checked. Hence, when I scan a large number of stocks, this divergence analysis could point to stocks that are in fact not interesting. LER, AB and Supply are easier to tune. I tune them ones a week.



Pascal