Divergence

madasafish

Well-known member
470 5
Another one on DAX today: Flag on white shown in top LHS of 2 min chart at 3568.approx 11.15am. DXA susbsequently fell (no higher his) to 3532 at 15.31.. 36points...3572 was spike at high at divergence so a short at 3568 and a 5 point stop would have been ok: risk reward:7:1
 

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madasafish

Well-known member
470 5
DAX divergences today: 5 minute chart...Note the one at 17:03 at 5952 successfully said the rally would fail .. but Dax regained all lost ground at close..

Divergence earlier in day at 3567 was not as good..DAX fell another 20 points before rallying...(glad I did not take it:)
 

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madasafish

Well-known member
470 5
yet another one on Dax (and ES) on 30th October

at the top of the big rally after news.. Naote in 5 minute day it fel and rallied a bit more before the proper fall..
 

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madasafish

Well-known member
470 5
so sorry

done in a hurry proper attached chart
 

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iq200

Well-known member
355 16
madasafish, I believe you said the white flags are your signals. What does the cyan around some of the bars signify?

Thnx,

Imran
 

madasafish

Well-known member
470 5
Cyanide

"What does the cyan around some of the bars signify?"

It means the market is oversold and due to rally:

the exact formula is

SSTAT <=10 and ( SLOWD#1<=20)
where SSTAT is based on: CCI<-100 in last 10 bars where CCI is 6,3 exponential (the light blue line under the chart..
and SLOWD = 9,5,5 exponential.

Works very well..

A warning only as we all know oversold markets can just keep falling... I don't trade 3 min charts on DAX.. but 1 minutes but use 3 as a guide for reversals..
 
 
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