Divergence--Not just for breakfast anymore!

[akeakamai]

Hello All!

I am currently working on a system based off of stochastic/price divergences! Many traders view them as good opportunities, but I wanted to take it a step further and build a system around them. I believe by combining this indicator with some kind of trend filter, this could turn out to be very profitable.

I had been noticing some excellent opportunities based on divergence signals on the daily charts, but also that the intraday charts were giving great signals as well, so I knew this deserved a proper investigation.

The full writeup should be done within a few weeks, but here's some of things I want to get hammered out:

-A reliable trend filter
-Figuring out the best pairs to trade
-The most profitable timeframes
-Fine points on entries
-An effective exit, and stop loss
-A detailed explanation of a valid entry signal
-Drawdowns for the system
-Backtesting results to see if it is profitable, and what to expect

I want to get some insight, comments and questions so that I can incorporate it into the writeup, so that everyone can have a go at it without worrying about the missing details. Sorry to make everyone wait but I think it'll be better in the end, Thanks for the listen, and in the mean time happy trading!