Home > Articles > Volume 21 (2003) > Chapter 12 (December 2003) > V. 21:12 (42-51): Divergence Bias by Giorgos Siligardos

V. 21:12 (42-51): Divergence Bias by Giorgos Siligardos

V. 21:12 (42-51): Divergence Bias by Giorgos Siligardos
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Divergence Bias by Giorgos Siligardos

Did you know that classical momentum and trend indicators have a bias in forming divergences?

One of the most common, elementary concepts in technical analysis is that of momentum. Most books on technical analysis have a reference, a section, or a few paragraphs devoted to it; however, no work has been published discussing whether the various momentum indicators incorporate a bias in forming divergences from the price. Until now.




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