Dow Intraday charts 11/08 15/08

V. III

Junior member
15 0
eti Chartman,

RSI divergences, whats the signal that they won't realise. i.e how fast do they deliver in general? And is there more probabilty of realisation under any specific time chart?

Thanks.
 

ChartMan

Legendary member
5,580 46
Divegences on 10/15 min chart can develop over a few days. On 1 min chart they are very specific as to their interpretation.
 

V. III

Junior member
15 0
Thanks,

Apart frm the divergence at the open and the duration(0.5hr... what do you mean by their interpretation?

Taking action on divergences ( especially PD) is a tricky excercise if taken from the open. They do not conform to the normal rules.
And my q. on the time to realisation was ref. to the 1min chart ?

On the 1 min chart, there must be at least 25 minutes between 3 peaks to be a valid top or bottom. Less than that, it is likely to be just a minor correction.

And if you can answer "...And is there more probabilty of realisation under any specific time chart?.."

Yes, in the 1 minute chart, 3 peak pos and Neg divergences produce highly predictable results. However, when you look at the 10/15 min charts, they are far less predictive and hence cannot be relied upon to deliver a result within a specific time frame..... we're talking hours.....to a day or two.
 

gkareer

Junior member
18 0
Chartman, i wanted to ask something about the Day Trading the Dow strategy please. The chart settings refer to 1-minute charts for DJI..now if i am trading the Dow(YM) future with IB..will this refer to the future chart(Ym) or the cash chart. I would think it would be the futures chart but i wanted to be sure.
Please could you confirm this!

nb - i have been paper trading your strategy on cash chart & i think it's Brilliant.

thanks

Sonny
 

ChartMan

Legendary member
5,580 46
If you're going to trade the DOW futs, you must use the futures chart. But, and others may well chip in, I think ES futures will be more tradable..... Personally I can't stand the DOW futures chats as the are just full of spikes, clouding the picture. You may find that it is better to do your TA off the cash chart, and time your entry off the futures chart.
 

ChartMan

Legendary member
5,580 46
Blaaaaast ! After a day of going nowhere, the DOW closes 16 points above my target in the last few minutes. :( Still , I managed a few points and an out at the top.... well, what I thought was the top at 9316, expecting it to fully drop back and close at 9306 . :cheesy:
Oh well. Such a boring day deserves no comment whatsoever. However, it is interesting to note , that even in the face of minimal volumes, the ND top still performed, with a small rollup into the close- often a Friday feature when trying to close at HOD, even though this wasn't HOD. After such a dreary session, ir sure felt like it. If you got 50 points today, I reckon you did well, with the best entry at the RS Switch and taking the double bottom.
 

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ChartMan

Legendary member
5,580 46
A nice test of channel support in the 15 min chart. Trust the channel until it breaks.The odds will be in your favour.....mostly. So DON'T ignore a 10/15 min channel break.!!!
Note that the trend lines are good for 10 min as well as 15 min.
Now we have a choice. Today's peak failed toreach resistance, producing a double top, icreasing the chances of the channle support failing. The opposite opinion is that there is a bull flag forming, that may break to the upside.
 

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