AI
Sunday, February 23, 2003 10:49:26 PM
Key Charts: Negative Divergences developing on the COMP & NDX intra-day charts. When oscillator divergences show themselves on oscillators which have well-calibrated, relatively docile settings, they tend to be quite powerful and very reliable. I have marked the negative divergences which I see developing currently, as well as some past divergences on the same charts so everybody can see how well they work.
Note the positive divergences, particularly on the 15-min NDX chart. That is the fuel, (to use an in-apt metaphor), for the current rally-let. But note that the developing negative divergences are on charts of longer duration. That means that should the negative divergences come to pass, (and some of them are nearly complete now, for all intents and purposes), they will trump the shorter-termed positive divergences and the market will go down.
(:
augie
p.s. Regarding indicator settings, I'm not blowing my own horn. I use a group of indicators and settings which LG has developed during his 25+ years as a successful trader. They are a truly excellent set of indicators, but the credit for their configuration (as well as the Multiple Time Frame Analysis system in which they are used) belongs ENTIRELY to LG!
p.p.s. LG doesn't use the RSI, and I usually don't either, but I just wanted a little bit more confirmation, and old habits die hard.
p.p.p.s. I marked the Negative Divergences in Red and the Positive Divergences in Blue.
p.p.p.p.s. If anybody is unfamiliar with the terms "positive divergence" and/or "negative divergence," please see the following explanation at StockCharts.com: http://stockcharts.com/education/What/IndicatorAnalysis/indicators3.html#posnegdiverg
Note the positive divergences, particularly on the 15-min NDX chart. That is the fuel, (to use an in-apt metaphor), for the current rally-let. But note that the developing negative divergences are on charts of longer duration. That means that should the negative divergences come to pass, (and some of them are nearly complete now, for all intents and purposes), they will trump the shorter-termed positive divergences and the market will go down.
(:
augie
p.s. Regarding indicator settings, I'm not blowing my own horn. I use a group of indicators and settings which LG has developed during his 25+ years as a successful trader. They are a truly excellent set of indicators, but the credit for their configuration (as well as the Multiple Time Frame Analysis system in which they are used) belongs ENTIRELY to LG!
p.p.s. LG doesn't use the RSI, and I usually don't either, but I just wanted a little bit more confirmation, and old habits die hard.
p.p.p.s. I marked the Negative Divergences in Red and the Positive Divergences in Blue.
p.p.p.p.s. If anybody is unfamiliar with the terms "positive divergence" and/or "negative divergence," please see the following explanation at StockCharts.com: http://stockcharts.com/education/What/IndicatorAnalysis/indicators3.html#posnegdiverg
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