new concepts in divergence - trade futurestrade-futures.com/newconceptsindivergence/new... · new...
TRANSCRIPT
![Page 1: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/1.jpg)
Jake Bernstein Trading Webinar [email protected]
New Concepts in Divergence
Powerful New Tools for Capturing
Significant Market Turning Points
Sunday 22 February 2015
© 2015 by Jake Bernstein [email protected]
800-678-5253 * 831-430-0600 www.jakebernstein.com
![Page 2: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/2.jpg)
Learn to find and love abnormal market behavior
Normal behavior in life, in the markets, in nature or in
relationships teaches me nothing; alerts me to nothing;
forewarns me about nothing…but abnormal behavior,
divergent behavior alerts me, forewarns me, primes me to the
possibility of pending change and change = opportunity
Divergence is an early warning system; a leading indicator;
an announcement of intent or trend change BUT the
expectations MUST BE TRIGGERED
Divergence can dissipate and conditions can return to normal
OUR JOB: identify divergence operationally and USE IT with
100% objective triggers and follow through
Let’s look at a few precise definitions of divergence and then
some illustrations
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 2
![Page 3: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/3.jpg)
Divergence…which one to use? This.. 1 a : a drawing apart (as of lines extending from a common center)
b : difference, disagreement
c : the acquisition of dissimilar characters by related organisms in unlike
environments
2: a deviation from a course or standard
Or this…In vector calculus, divergence is a vector operator that measures
the magnitude of a vector field's source or sink at a given point, in terms
of a signed scalar. More technically, the divergence represents the
volume density of the outward flux of a vector field from an infinitesimal
volume around a given point.
Or this…
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 3
![Page 4: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/4.jpg)
Today we will do the following The concept of divergence explained
Why divergence is an ideal leading indicator
Markets as an auction process
Momentum as a divergence indicator
Accumulation pattern in momentum
The divergence model
How divergence differs from other timing methods
5 ways to spot and time divergence: New concepts
Setup – Trigger – Follow through: Stocks, futures, forex
All triggers 100% objective (no "looks like" or analysis)
Profit maximizing strategies
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 4
![Page 5: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/5.jpg)
The accuracy continuum
My evaluation of % accuracy for various
indicators and methods
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 5
25% 35% 45% 55% 65% 75% 85%
MA crossover
Seasonals
Stocks
Futures
Forex
Spreads
Divergence
Based
systems
Breakouts
VB systems
Donchian
FPO
MAC
Swing
3x3
8OC
Darts EW Fib
Guessing
Gann
Intuition
All with
Risk
management
![Page 6: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/6.jpg)
Divergence model: 6 types Price vs indicator
1. Price trending higher and indicator trending higher price
makes new high indicator does not: bearish
2. Price trending lower indicator trending lower price makes
new low indicator does not: bullish
3. Indicator makes new high price does not make new high:
price likely to make new high – bullish: RARE
4. Indicator makes new low price does not make new low:
price likely to make new low – bearish: RARE
5. Price and indicator making new highs: normal
6. Price and indicator making new lows: normal
7. What are the “indicators”? TBA
8. Examples of the 4 major patterns
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 6
![Page 7: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/7.jpg)
Normal
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 7
![Page 8: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/8.jpg)
Normal
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 8
![Page 9: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/9.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 9
STF model: an overview
What is a TIMING TRIGGER?
Timing triggers, timing indicators, objective methods
and trading systems
Why most timing triggers and indicators don’t work
Separating market myth from market reality
Patterns, predictions and profits
Importance of a TRADING MODEL
Why do so many traders lose?
How to traders win?
Review of my S – T – F trading model
![Page 10: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/10.jpg)
Abnormal bearish
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 10
![Page 11: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/11.jpg)
Abnormal bearish
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 11
![Page 12: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/12.jpg)
Abnormal bearish – how IBM topped
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 12
![Page 13: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/13.jpg)
IBM with another divergence tool
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 13
![Page 14: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/14.jpg)
A closer look at the IBM top
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 14
![Page 15: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/15.jpg)
Abnormal bullish + follow thru
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 15
![Page 16: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/16.jpg)
Abnormal bullish: closer look
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 16
A
B C
D
E T
![Page 17: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/17.jpg)
Abnormal bullish + STF
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 17
![Page 18: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/18.jpg)
Abnormal bearish: mom 28
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 18
![Page 19: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/19.jpg)
Abnormal bearish: macd 9,18
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 19
![Page 20: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/20.jpg)
Bearish stf dt 7,1 what’s that?
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 20
![Page 21: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/21.jpg)
My conclusions about divergence as a
trading and timing method as I will teach it to
you today…
Leading indicator
All time frames
100% objective
Best method for spotting tops and bottoms
Not subject to same limitations as moving averages
Available on all trading platforms
Also known as rate of change (ROC)
Can easily be calculated by hand
Can be used in all markets including 4X
Can be used as confirming indicator
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 21
![Page 22: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/22.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 22
Momentum Divergence
Use divergence indicator
Look at last 60 price bars
Bullish divergence – new high in price for last 60
bars with NO new high in MOM
Bearish divergence – new low in price for last 60
bars with NO new low in MOM
My Power Momentum Manual
Set up A, B, C and D points
See example
Look for TRIGGER point at E – see example
![Page 23: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/23.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 23
Bullish divergence set up
![Page 24: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/24.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 24
Bullish divergence set up
![Page 25: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/25.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 25
Bullish divergence set up
![Page 26: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/26.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 26
Bearish divergence set up
![Page 27: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/27.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 27
Bearish divergence set up
![Page 28: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/28.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 28
Bullish divergence set up and trigger
![Page 29: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/29.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 29
Bullish divergence set up and trigger
![Page 30: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/30.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 30
Bullish divergence set up and trigger
![Page 31: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/31.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 31
Bullish divergence set up and trigger
![Page 32: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/32.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 32
Bearish divergence set up and trigger
![Page 33: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/33.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 33
Bearish divergence set up and trigger
![Page 34: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/34.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 34
Bearish divergence set up and trigger
![Page 35: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/35.jpg)
If you want training wheels?
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 35
![Page 36: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/36.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 36
![Page 37: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/37.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 37
![Page 38: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/38.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 38
![Page 39: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/39.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 39
![Page 40: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/40.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 40
![Page 41: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/41.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 41
![Page 42: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/42.jpg)
Divergence tools
Momentum 28 close
MACD 9, 18 close
Detrended oscillator 7 (examples)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 42
![Page 43: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/43.jpg)
Wht and why and how: detrend?
Remove trend
Look only at cycle
Why?
How?
Take MA of price and subtract from price
Example next slides
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 43
![Page 44: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/44.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 44
![Page 45: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/45.jpg)
What detrending does
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 45
![Page 46: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/46.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 46
![Page 47: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/47.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 47
![Page 48: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/48.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 48
![Page 49: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/49.jpg)
Compare MOM 28 no setup
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 49
![Page 50: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/50.jpg)
Same chart macd
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 50
![Page 51: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/51.jpg)
Same chart dto
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 51
![Page 52: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/52.jpg)
On balance volume OBV M
Granville
Concept
My adaptation: momentum of obv – why
WARNINGS cumulative and no 4x vol
BEST for weekly – why?
Examples
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 52
![Page 53: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/53.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 53
![Page 54: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/54.jpg)
Same chart OBVM
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 54
![Page 55: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/55.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 55
![Page 56: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/56.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 56
![Page 57: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/57.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 57
![Page 58: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/58.jpg)
Twtr mom: b = e comment
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 58
![Page 59: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/59.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 59
![Page 60: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/60.jpg)
Why we have multiple tools
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 60
![Page 61: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/61.jpg)
Better: macd
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 61
![Page 62: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/62.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 62
![Page 63: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/63.jpg)
Lets do a few that are pending
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 63
![Page 64: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/64.jpg)
DTO
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 64
![Page 65: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/65.jpg)
obv
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 65
![Page 66: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/66.jpg)
mom
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 66
![Page 67: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/67.jpg)
macd
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 67
![Page 68: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/68.jpg)
Important to remember Process
Watchlist
Time frames – do not compare
Pt1 33% for large risk trades
60 bar window
6 bar minimum setup
Multiple divergence
Must wait for CLOSE for trigger!
Can do on spreads
Day trade considerations
Options
Take lowest risk trade
Danger zone © 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 68
![Page 69: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/69.jpg)
What to expect
Should hit pt1 quickly 2-5 bars
Must have pt orders in
About 70% + accurate
Do not duplicate
What if you miss an entry or exit
Profit maximizing considerations
The 2% and 5% rules
Example
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 69
![Page 70: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/70.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 70
![Page 71: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/71.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 71
![Page 72: New Concepts in Divergence - Trade Futurestrade-futures.com/NEWCONCEPTSINDIVERGENCE/NEW... · New Concepts in Divergence ... How divergence differs from other timing methods ... Swing](https://reader035.vdocuments.us/reader035/viewer/2022062907/5ab5ef997f8b9a6e1c8d513a/html5/thumbnails/72.jpg)
© 2015 by Jake Bernstein www.trade-futures.com 800-678-5253 * 831-430-0600 72
Concluding I can be reached at 800-678-5253 or 831-430-0600
Email me if you have questions: [email protected]
Thank you for attending
Mentoring appointment interview and information:
http://www.comtrade1.com/letter/
Best of trading
Jake Bernstein