Here is a tick chart of GBP.USD. I have inserted a line at the highs and lows. I continue to struggle with interpreting divergence. This chart looks like is is in consolidation, so a breakout set up is probably best, but I'd like some comments on where you readers see a divergence set-up. What is used for the MACD, the MACD itself or the histogram? I have seen both used. This chart shows two opposite divergences for MACD and the histogram, at line B and D. Perhaps the double top makes it null and void. Can anyone help on interpreting this chart?
Tick: I have read that back testing should be done with tick data, since it removes the time element. I am beginning to read more about using tick charts, after looking at them for a few days I like what I see. Price action matters more than time data. Comments?
Well, besides this is an old post (2008), I'll share my impressions on it...
ReplyDeleteBeen dealing with tick, range and renko bar charts for a while i'm now more inclined to use renko cause i like its cleaner aspect.
For divergence finder i prefer MACD histogram.