T2W Bot

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Many of us are already using support/resistance levels to locate possible turning points in the markets. We can identify these by looking at multiple time frame charts. Depending on your style of trading (investor, swing trader, day trader, etc), you could use two larger time frame charts to identify trends and support/resistance levels. For a day trader this could be perhaps a daily and a 30-minute chart. Once we have an idea of potential turning points from the bigger picture charts, we can step down to a smaller chart. This could be a 5-minute chart that we will use to manage our trade once we enter the position. Our next chart will be our action chart. This one will be the smallest time frame in our charts we look at. Perhaps a 1 or 2-minute chart. From this chart we will time our entries at these larger time frame turning points.
Notice how I listed four chart time frames to observe. This is important because what seems to happen is that people get caught up in looking at too...

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Is the Divergence as obvious as it seems?

My question whenever I see such strategies is to query the price variance. In the figure 1 example a nice down sloping line is shown to contrast with the up sloping line on the CCI. But isn't the CCI calculated based on the closing price? Therefore should not the price line be drawn based on the closing price, which would give a far less dramatic down slope and hence not such a dramatic divergence? I've seen other examples where based on this revised approach there isn't a divergence at all. Would welcome your view. Best Regards, SIT
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