Most of my day trading involves, either directly or indirectly, the principles of convergence and divergence. For day trading in the futures market, I am concerned primarily with converging indicators and agreement and oscillators. But there is a wide range applications for the principles of convergence and divergence. I thought this video from INO was very informative and will provide you with some valuable insight into the practical application of bearish and bullish convergence and divergence.
I thought I would talk a bit about trade entry today and how divergent indications on some of the oscillators I use indicates the need for caution. Emini trading is a process of choosing the highest percentage trades, and conversely, avoiding the lowest percentage trades. The ultimate goal of any trading system is to maximize the binary result of any trade, and I think that is an important point to remember. Trading is really just a matter of entering when your chances are best for a strong trade.