Wacky week

I understand there have been a couple of unusual bits of news, but this is the second day this has happened... incredible bear flags today.

I'm not drawing conclusions (yet), but thought I'd share, even if I get slammed with stupid comments...

I apologize if some of my lines are off center...

 

are you trading the breaks of the lower trendlines on those flags? They have paid well for the last three even if you only capture 30% of the break.

 

I don't trade off those indicators directly, I use them as a basis for my own semi-discretionary systems.

Using the standard indicators is a great way to judge, since they're not systems themselves. IMO

 

Not sure why you are calling a trendline an indicator since it is subjective and not a mathematical result.

Take a look at the lower TL break going on now with the es and the breakdown of the previous bear flags. See the commonality?

Note the chart I posted today on the es journal thread. those lines are still in tact and actually being broken as we speak.

Hope that helps your original question

 

Those aren't trend lines, I used the lines to show the divergence, not trend patterns. This is the standard way to use these indicators (MACD, and money flow/share accumulation data). Fundamental data - not a curve fit or hypothesis.

Thanks for the reply... happy trading tomorrow.

 

Have you looked to see if there is a price divergence with the RSI as well? I understand prices tend to correct in favor of the RSI after a divergence.

 

What?

 

Yes, not a big divergence however.

I've been focusing my time the last two weeks perfecting 4 systems I wrote... none of them are negatively affected by this. I don't directly trade off of any of those indicators - I like to use the chart I posted (and one other) to measure statemented from a technical perspective, and to forecast future direction. Clearly the recent news has had a 'more unusual than usual' affect. So... be aware! Thank you for the input bc

 

-19.75 points... how bout that... still seemingly bullish!

Thanks for commenting...

 

This is the lowest average volume over a two week period in two years! (I did not check back any further.) Makes technicals very unreliable, because anyone with lots of leverage can come in and move the market.