Wednesday, January 25, 2012

ES with divergencies/pattern/fib extension/trendline

15m chart on the left shows good examples of divergencies on MACD giving good clue as to which way it is going next, both the drop and the pop. Thrown in to help with the analysis are the double top and inverse head and shoulders patterns, fibonacci extensions and the trendline. you can see that this divergence being formed took hours so that you had a lot of time to watch and analyze before making trading decision.

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