Saturday, February 9, 2013

Divergence

Divergence on a bigger time frame, D or 4hr, is a great way to get an early warning of a potential counter trend move. When pa confirms the divergence with a good candle set up (such as a hammer or engulfing close), or you get a signal from indicators you have tested (RSI cross of its ma, RSI cross of 50 level, move through 8 lwma) a decent move will generally follow.

No comments:

Post a Comment