ES Journal Archive (2006 - 2008)
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I don't see a triple BRD on daily. I do see a second short grail on RSI which is giving me pause. The reason that I am reluctant to short the market is threefold. One, the weekly is still strongly up and two, the monthly is strongly up, three the maerket has failed three time around 1440. This has me wanting to buy in again on on a pullback or strength. I may miss a few points, but I think I would be more comfirtable on on additional strength.
For an example of the triple divergence pattern as I define it, please go to the last post in "Fx Futures Journal" and you will see a chart example there.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1316713#post1316713
http://www.elitetrader.com/vb/showthread.php?s=&postid=1316713#post1316713
I saw it and I think it's not what you class as an A-class triple, as RSI's 2nd peak is higher than the 1st one, same in MACD. I can see it in the histogram, but not in MACD or RSI.
On ES daily there are 3 declining peaks both in RSI & MACD. So I don't understand why it isn't there IYO and why AUD has.
Quote from romik:
I saw it and I think it's not what you class as an A-class triple, as RSI's 2nd peak is higher than the 1st one, same in MACD. I can see it in the histogram, but not in MACD or RSI.
On ES daily there are 3 declining peaks both in RSI & MACD. So I don't understand why it isn't there IYO and why AUD has.
The Aussie triple divergence is in the histogram not in the MACD or the RSI. I should have clarified, but that is why I drew the line over the Histogram only. The strongest divergences come from the histogram , in fact I don't even look at the peaks in the MACD very often. They can be used of course, but the histogram is the strongest version of divergence. The RSI is also not a triple, but it certainly is a failure swing and that is what is important. You'll notice that the failure swing occurs first and then the histogram divergence. This is the same way that it occurred on the daily ES back in June. RSI failure swing preceding divergence by one day.
Quote from romik:
I saw it and I think it's not what you class as an A-class triple, as RSI's 2nd peak is higher than the 1st one, same in MACD. I can see it in the histogram, but not in MACD or RSI.
On ES daily there are 3 declining peaks both in RSI & MACD. So I don't understand why it isn't there IYO and why AUD has.
As regards the ES question, I do see the MACD triple that you are speaking about but it is not in the histogram which is what I was looking at. It can be argued that the RSI has a triple dating back to the peak on 10/26/06. In any event, I feel like stepping aside for now, although I don't want to short yet.--I am probably wrong.
I wanted to post a chart here of hourly ES. This chart would be a continuation of the hourly chart Thursday where I posted a double bottom hourly chart. The posting of this chart is designed so that you can see where I failed to read the chart correctly Fri and what should have been done. Note: there is a bullish divergence in Histogram at the close Fri although the shape of the second trough in Histogram is not of the greatest shape or a small as I would like. In any case, if you would be long on this divergence, the stop would be placed just below the low Fri and that's the key to trading anyway right? (Keeping losses small).
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