When Market is exhibiting buying or selling pressure, convergence in internals is a good indicator of the strength. When index makes a range extension, if TICKS and Spreads also make a range extension, there appears to be strength in the…
Monthly Archives: April 2014
SR – Wide Range Bars and Trade Ananlysis for Apr-11-2014
Wide Range Bars (WRB) with above average volume that leaves a GAP implies significant shift in supply and demand. GAP here refers to the previous candle and next one after WRB that doesn’t completely overlap the body of Wide Range…
Posted in Study
Week Ahead – Short Term Price Targets
On Apr-11-2014 ES broke below 100 day moving average (1816). Market closed around 1811 and this is sitting right on 1 year SD-1. If price breaks below 1810 (SD-1) , following are the major support lines 1) 1792 : This…
Posted in EOD Analysis
Divergence – Trade Analysis for Apr-10-2014
NQ displayed divergence at open from YM and ES. Internals displayed buying pressure (+600) and sell offs were shallow. BUT NQ and NQ spreads (NDD) were showing divergence from rest of the instruments. Divergence in Instruments : If there is…
Posted in Study
Identifying Direction – Convergence and Divergence
Monitoring convergence or divergence in internals and correlated instruments is an effective method for gauging market direction. For Market to continue in the current direction, there should be CONVERGENCE in instruments and internals. For eg, If TICKS made a high,…
Posted in Study