GOLD PRO Weekly July 22-26, 2013

[Sive Morten]

Hi Sive

I like to see hidden divergence on two indicators for conformation MACD histogram and MOM and to me gold looks to be forming bearish hidden divergence on d1
View attachment 10384

P.S. please let us know if this is incorrect thanks

Hi Dkami,
by your analysis we do not have divergence yet, since you do not have second MACD lines crossing.
Second, histogram divergence is a bit different tool. Since histogram is showing distance between lines, then probably it indicates the power and momentum of current move.

 

[dkami]

Hi Dkami,
by your analysis we do not have divergence yet, since you do not have second MACD lines crossing.
Second, histogram divergence is a bit different tool. Since histogram is showing distance between lines, then probably it indicates the power and momentum of current move.

Hi Sive

Thanks for your reply as I'm always looking to learn more in this never ending battle learning technical analysis
Yes you are correct the MA lines on MACD have not crossed down and I do believe seeing the MA's on MACD giving the hidden divergence along with histogram is a much stronger signal and yes I do relies histogram is the difference between the two MA's

So now I have a question if you would be so kind to answer can you use the MACD histogram alone to give hidden divergence without the MA's on MACD giving the hidden divergence?
I have attached pic so you can see what I mean

 

[knight270]

Is the 4H DRPO SELL VALID?

Good day to u sive, thanks for the great analysis, from my own point of view, on the 4hr chart on Gold, it seems DRPO sell has formed around the .618 fib retracement area, of the previous swing, is these context for sell justified?

 

[Sive Morten]

Hi Sive

Thanks for your reply as I'm always looking to learn more in this never ending battle learning technical analysis
Yes you are correct the MA lines on MACD have not crossed down and I do believe seeing the MA's on MACD giving the hidden divergence along with histogram is a much stronger signal and yes I do relies histogram is the difference between the two MA's

So now I have a question if you would be so kind to answer can you use the MACD histogram alone to give hidden divergence without the MA's on MACD giving the hidden divergence?
I have attached pic so you can see what I mean

Well, Dkami, probably we can use just histogram for divergence estimating, but have to know the core of this. I mean that histogram shows the momentum, i.e. strength of current trend. Divergence in this case just shows that momentum has become weaker by some reason. Usually I use this signal only as confirmation or for additional confidence, when I already have some solid context in the same direction. For example, as I like to see divergence with wedges or 3-Drives.

Good day to u sive, thanks for the great analysis, from my own point of view, on the 4hr chart on Gold, it seems DRPO sell has formed around the .618 fib retracement area, of the previous swing, is these context for sell justified?

No we do not have DRPO here, because this is too deep move down at first crossing of 3x3 DMA. Pure DRPO suggests no reaching of singificant Fib support level at first crossing.

 

[dkami]

Well, Dkami, probably we can use just histogram for divergence estimating, but have to know the core of this. I mean that histogram shows the momentum, i.e. strength of current trend. Divergence in this case just shows that momentum has become weaker by some reason. Usually I use this signal only as confirmation or for additional confidence, when I already have some solid context in the same direction. For example, as I like to see divergence with wedges or 3-Drives.

Thanks sive