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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: h_ who wrote (68545)2/15/2015 12:08:54 PM
From: Mario :-)4 Recommendations

Recommended By
cole steel
GROUND ZERO™
Hawkmoon
Justinfo

  Read Replies (4) | Respond to of 222096
 
I think, divergences are useful in free markets where price discovery is not tempered with. But when you have some huge forces, huge money flooding the markets with the plan to push it in one direction, divergences can't help that much any more. I have followed few charts that worked great in the past but they stopped working after combined effort from central banks to prop equity markets higher. This is one example:

CMF divergences:



Ratio (upper, green) tops before markets (bottom, red):




To: h_ who wrote (68545)2/15/2015 12:23:50 PM
From: GROUND ZERO™1 Recommendation

Recommended By
Hawkmoon

  Respond to of 222096
 
Good article, thanks, I think it's obvious, but not to everyone...

GZ