MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 679.68

+0.7%

Nov 26 4:00 PM EST

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To: HighTech who wrote (950)	12/8/1998 5:49:00 PM
From: SE	Read Replies (2) of 99985

Maybe I can assist. This is from memory, but the chart shows a high around 11 am or so. It then shows a second high at least equal to the first, maybe higher. However, note the MACD at those two points....it is high the first time and lower the second. You can see the stock tanked 2 points after that. Beautiful play.... A divergence is when the price sets a higher high and the indicator sets a lower low. Or price a lower low and the indicator a higher high. Hope that helps. -Scott EDIT - Just checked the chart and from the morning high, it is actually a triple divergence....prices go up, indicator coming down.

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