“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC


Thursday, 19 May 2016

19 May 2016 - One But Not The Other

So yesterday I spoke of the positive divergence that was occurring in the intra and daily charts.  I also mentioned that the signal in the intra-day chart should point downward and best if it is in the OS condition.  We got both today and prices pushed lower as a result.  The problem now is that with price pushing lower, we eliminated one positive divergence but still have another still in effect.  Therefore, a chance of a reversal or CIT still exists.

So you're probably asking what happens now.  Well from experience, I want to see prolonged stay at the OS or bearish range of our indicators.  Since the daily positive divergence is in question here, the lower time-frame would be the one to watch for that bearish staying power.  The next best thing is to watch for a reset of the signal for a top reducing the risk for a premature short entry.  Confirmation is always key.

SEN: Bullish (Down-Trending May 5th)

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