RSI Divergences

Hi Jackozy,

I'm very well aware of the requirements set out by Elliott Wave International and do not disagree with them. The 1.618 minimum is an additional requirement not mentioned, to my knowledge by them, but used extensively by many EWT practitioners across the globe. Please don't run away with the idea this is something I dreamt up; I only wish I could lay claim but that would be crass. I have yet to find a single instance wherein the 1.618 does not hold up, which is why I, and many others, used it as a 'must have'. If you find one then please advise as I'd love to take a look.

Hi Jackozy,

How kind you are! I don’t expect my request to be answered every time, as I know people like you are busy. And I am so luck that I can get diver and your help here on this particular subject, on this ChartView.

Yes, I know bullish and bearish divergences. Your this post will help me to know RSI indicator more.

Thanks for this link:dl.dropboxusercontent.com/u/20815047/%2B...SI%20divergences.jpg
One picture = 1000 words.

I regard this Negative RSI is a false sign for sp further up, and Positive RSI has probability in keeping sp from falling or reversing the sp short term downtrend. As you said that +ve and -ve divs are continuation patterns.


I did put RSI of GKP oversold chart on GKP BB on Sunday. Rcmacf responded me a post, telling me to use RSI with caution, and suggested me to read the book of John Hayden. He provided me search words: The Complete RSI, John Hayden

I found this pdf file and downloaded it. I tell myself I have to read it (it is hard for me now)

on greenhill

On Greenhill,

How kind you are! I don’t expect my request to be answered every time, as I know people like you are busy. And I am so luck that I can get diver and your help here on this particular subject, on this ChartView.

---

Spot on... i may not agree with everything but do find both of their post helpful in both learning and thought provoking way... but you know what... at least they provide opinion and debate and i think this place would be worst off without them both.

nobody is all ways right, every trader i'm aware off does things their way, if it's making them money why change something that works for that individual...

i see lots of others lurking abt, be a much better place if more contributed and even if its just to ask a question to aid their learning that's sufficient... this site has been designed for that....

rgds WS

Here's an example of a negative RSI divergence on POG's daily chart:



dl.dropboxusercontent.com/u/20815047/POGdaily01_05_13.gif

Here's an example of how a 3rd wave didn't extend to a minimum of 1.618 of wave 1 and also didn't have a bearish RSI divergence:



dl.dropboxusercontent.com/u/20815047/Dow.gif

There was also no divergence on the daily chart between these 2 peaks.

Ha! Ha! Now I just know you know the answer to that



.....because it's an A wave. Check out what you are labeling wave 2 and you will find it didn't even retrace to 38.2%, a first indication this is not a motive wave as most wave 2's retrace to at least 50%. No divergence on the RSI between your waves 3 and 5 and it's a cast iron ABC. Check out the C wave to W and you will see a perfect example of a motive wave; as was the wave ( b ) of the move from 2007 to 2009.

Have a good day mate I'm doing some decorating