X-Account-Key: account3 X-UIDL: 1195404468.001 X-Mozilla-Status: 0011 X-Mozilla-Status2: 10000000 X-Mozilla-Keys: Received: from n20a.bullet.mail.re1.yahoo.com by genie.lightpatch.com id aa05998; 18 Nov 2007 8:38 PST Comment: DomainKeys? See http://antispam.yahoo.com/domainkeys DomainKey-Signature: a=rsa-sha1; q=dns; c=nofws; s=lima; d=yahoogroups.com; b=o0TpxzFlHanMc7rS86S+Yur7FOHraUU1C5h9PuP9RN/acMwPqqJH1HKUpiOBykMuidPZLhY8ZHFNUfiMKTXAbwVslEqySJ5A1AWSDehSC4pRie8sla3ZqUjE+a5HrG1Z; Received: from [68.142.237.88] by n20.bullet.mail.re1.yahoo.com with NNFMP; 18 Nov 2007 16:37:43 -0000 Received: from [209.73.164.86] by t4.bullet.re3.yahoo.com with NNFMP; 18 Nov 2007 16:37:42 -0000 Received: from [66.218.67.108] by t8.bullet.scd.yahoo.com with NNFMP; 18 Nov 2007 16:37:42 -0000 X-Yahoo-Newman-Id: 12111071-m75272 X-Sender: gmorlan@tampabay.rr.com X-Apparently-To: MetaTrader_Experts_and_Indicators@yahoogroups.com X-Received: (qmail 54947 invoked from network); 18 Nov 2007 16:37:39 -0000 X-Received: from unknown (66.218.67.94) by m44.grp.scd.yahoo.com with QMQP; 18 Nov 2007 16:37:39 -0000 X-Received: from unknown (HELO hrndva-omtalb.mail.rr.com) (71.74.56.122) by mta15.grp.scd.yahoo.com with SMTP; 18 Nov 2007 16:37:39 -0000 X-Received: from lorenzy5yllpkh ([72.184.17.31]) by hrndva-omta05.mail.rr.com with ESMTP id <20071118163738.ZAJC9760.hrndva-omta05.mail.rr.com@lorenzy5yllpkh>; Sun, 18 Nov 2007 16:37:38 +0000 To: References: <000001c82973$c95a8630$5c0f9290$@rr.com> <002f01c829f2$fcdd5fd0$6401a8c0@HamidK> In-Reply-To: <002f01c829f2$fcdd5fd0$6401a8c0@HamidK> Message-ID: <007201c82a01$52a9c210$f7fd4630$@rr.com> X-Mailer: Microsoft Office Outlook 12.0 Thread-Index: Acgpc8dO7BNQhk1AROeTlfv8kqDE2QAfv24gAAKbQbA= Content-Language: en-us X-Originating-IP: 71.74.56.122 X-eGroups-Msg-Info: 1:12:0:0:0 From: Loren Morlan X-Yahoo-Profile: lorenmorlan Sender: MetaTrader_Experts_and_Indicators@yahoogroups.com MIME-Version: 1.0 Mailing-List: list MetaTrader_Experts_and_Indicators@yahoogroups.com; contact MetaTrader_Experts_and_Indicators-owner@yahoogroups.com Delivered-To: mailing list MetaTrader_Experts_and_Indicators@yahoogroups.com List-Id: Precedence: bulk List-Unsubscribe: Date: Sun, 18 Nov 2007 11:37:32 -0500 Subject: RE: [MT_E and I] GBP/JPY 11/17/07, 30 M X-Yahoo-Newman-Property: groups-email-ff-m Reply-To: MetaTrader_Experts_and_Indicators@yahoogroups.com Content-Type: multipart/related; boundary="----=_NextPart_000_0073_01C829D7.69D3BA10" X-Antivirus: AVG for E-mail 7.5.503 [269.16.0/1136] ------=_NextPart_000_0073_01C829D7.69D3BA10 Content-Type: multipart/alternative; boundary="----=_NextPart_001_0074_01C829D7.69D3BA10" ------=_NextPart_001_0074_01C829D7.69D3BA10 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Hello Hamid, The A/D indicator is the Accumulation/Distribution indicator. This indicator is a lagging indicator with respect to price and other leading indicators. That is why A/D is excellent in reverse negative or classic divergence identification. In the example GBP/JPY, during the period 11/1/07 to 11/9/07, knowledgeable traders recognized that price was going to fall accordingly price highs and lows were progressively lower in this period. Price is always first to move in a trend change. During this period uniformed traders continued to cause an increase in "Accumulation" erroneously thinking that price was going higher. Ultimately on 11/9/07, both price and "accumulation" collapsed driving price to its lows for the period. There are other leading indicators such as RSI, Stochastic, CCI, etc. which will also trace divergences. Typically however A/D does a better job with this identification as presented/demonstrated in this example. Loren From: MetaTrader_Experts_and_Indicators@yahoogroups.com [mailto:MetaTrader_Experts_and_Indicators@yahoogroups.com] On Behalf Of Hamid Kassam Sent: Sunday, November 18, 2007 9:55 AM To: MetaTrader_Experts_and_Indicators@yahoogroups.com Subject: RE: [MT_E and I] GBP/JPY 11/17/07, 30 M Hi Loren, Thanks for the explanation. I may have missed previous posts on this, but could you explain what the A/D indicator is? Thanks. Hamid. _____ From: MetaTrader_Experts_and_Indicators@yahoogroups.com [mailto:MetaTrader_Experts_and_Indicators@yahoogroups.com] On Behalf Of Loren Morlan Sent: November 17, 2007 6:44 PM To: blutofx@gmail.com Subject: [MT_E and I] GBP/JPY 11/17/07, 30 M The attached chart using A/D, identifies both a historical reverse negative and current reverse positive divergences. During the period from 11/1/07 to 11/9/07, A/D lows and highs were increasing in value while fractal highs and lows were falling in value as shown by horizontal red and green lines on HA candles. Price was in a down cycle during this period while A/D was increasing in value thus identifying a RND. Each of the red line fractal highs offered multiple lower risk opportunities to short, all of which were successful trades. Those unfamiliar with reverse divergence please refer to M. Pring and B. Star separate articles regarding this issue. >From 11/12/07 to 11/16/07, an active RPD is traced by A/D and price. Price low at fractal low on 11/16/07, is higher than price low on 11/12/07, while A/D is lower in value, a RPD. Going forward each new green line fractal low which has a lower A/D value than 20586 (value on 11/12/07) will offer another long opportunity. Price is near the lower SDC line (created in fully expanded mode). Daily charts show longer term up cycle. The contemplated trades are in the direction of this longer trend. Comment: The reverse divergence patterns in this chart are commonly repeated and are the most reliable trading signals since they join an established trend. Loren ------=_NextPart_001_0074_01C829D7.69D3BA10 Content-Type: text/html; charset=US-ASCII Content-Transfer-Encoding: 7bit

Hello Hamid,

 

The A/D indicator is the Accumulation/Distribution indicator.  This indicator is a lagging indicator with respect to price and other leading indicators.  That is why A/D is excellent in reverse negative or classic divergence identification. 

 

In the example GBP/JPY, during the period 11/1/07 to 11/9/07, knowledgeable traders recognized that price was going to fall accordingly price highs and lows were progressively lower in this period.  Price is always first to move in a trend change.  During this period uniformed traders continued to cause an increase in “Accumulation” erroneously thinking that price was going higher.  Ultimately on 11/9/07, both price and “accumulation” collapsed driving price to its lows for the period.  There are other leading indicators such as RSI, Stochastic, CCI, etc. which will also trace divergences.   Typically however A/D does a better job with this identification as presented/demonstrated in this example.

 

Loren

 

From: MetaTrader_Experts_and_Indicators@yahoogroups.com [mailto:MetaTrader_Experts_and_Indicators@yahoogroups.com] On Behalf Of Hamid Kassam
Sent: Sunday, November 18, 2007 9:55 AM
To: MetaTrader_Experts_and_Indicators@yahoogroups.com
Subject: RE: [MT_E and I] GBP/JPY 11/17/07, 30 M

 

Hi Loren,

 

Thanks for the explanation.  I may have missed previous posts on this, but could you explain what the A/D indicator is?

 

Thanks.

Hamid.

 

From: MetaTrader_Experts_and_Indicators@yahoogroups.com [mailto:MetaTrader_Experts_and_Indicators@yahoogroups.com] On Behalf Of Loren Morlan
Sent: November 17, 2007 6:44 PM
To: blutofx@gmail.com
Subject: [MT_E and I] GBP/JPY 11/17/07, 30 M

 

The attached chart using A/D, identifies both a historical reverse negative and current reverse positive divergences.

 

During the period from 11/1/07 to 11/9/07, A/D lows and highs were increasing in value while fractal highs and lows were falling in value as shown by horizontal red and green lines on HA candles.  Price was in a down cycle during this period while A/D was increasing in value thus identifying a RND.  Each of the red line fractal highs offered multiple lower risk  opportunities to short, all of which were successful trades.  Those unfamiliar with reverse divergence please refer to M. Pring and B. Star separate articles regarding this issue.

 

From 11/12/07 to 11/16/07, an active RPD is traced by A/D and price.  Price low at fractal low on 11/16/07, is higher than price low on 11/12/07, while A/D is lower in value, a RPD.   Going forward each new green line fractal low which has a lower A/D value than 20586 (value on 11/12/07) will offer another long opportunity.

 

Price is near the lower SDC line (created in fully expanded mode).  Daily charts show longer term up cycle.  The contemplated trades are in the direction of this longer trend.

 

Comment: 

 

The reverse divergence patterns in this chart are commonly repeated and are the most reliable trading signals since they join an established trend.

 

Loren

 

 

 

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