Trading Time. - CQG.com

Analysis of eBay shows where signals can appear.
Divergence pattern for stocks
The raw statistics suggest that there is the possibility to create a viable trading system that
would suit a buy-and-hold strategy, for example, pension funds or for the private trader
who wants to track a smaller portfolio for investment purposes. More time will be
required before further progress can be made in order to analyze portfolio risk and the
short signals.
Conclusion
It is not automatically necessary that step method is confined just to the Stochastic and
RSI. It can extend to almost any momentum study; especially in the area of divergence a
suite of indicators can be utilized to spot potential turning points in trends.
Key elements
■ RSI Steps are more sensitive.
■ Cycles do not apply.
■ Steps method is a powerful divergence tool.
■ Steps method can apply to any indicator as long as there is a crossover
point to reference.