I'm seeing major positive divergences

Quote from cunparis:

I'm seeing major positive divergences in the indexes. Here is the S&P:

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=3&dy=0&id=p31499194469&a=151197522 (attached in the post below)

MACD, RSI, Williams %R, and Force Index all have major divergences.

Furthermore I can't believe the overnight move we're seeing. -4.81% as I write this.

It seems to me the selling pressure has let up. Looking at a 60 minute chart we see that the majority of the volume is on the buying side.

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To me this is positive for the moment.
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There is absolutely 0 edge w/ your idea
 
Quote from Sky123987:

There is absolutely 0 edge w/ your idea
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Everyone trades their beliefs.

I managed to add on 2 long TF and 1 long CL, all 3 positive with a stoploss at breakeven. So it's a free spin of the wheel.
 
Quote from lilduckling:

Look carefuly again at the vol and price where you drew the trend lines.
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Please be me specific, I don't see what you're referring to.

If I incorrectly identified positive divergence I'd like to learn how I can improve.
 
Quote from cunparis:

Please be me specific, I don't see what you're referring to.

If I incorrectly identified positive divergence I'd like to learn how I can improve.
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On the last 6 vol bars.... the last 3 increase as price falls lower... the 3 before that decrease as price increases. Almost every time I see this, the consolidation breaks to the downside..... even though everything else looks like a divergence. I used to get burnt until i started paying more attention to the last few bars especially as approaching MA
 
Quote from lilduckling:

On the last 6 vol bars.... the last 3 increase as price falls lower... the 3 before that decrease as price increases. Almost every time I see this, the consolidation breaks to the downside..... even though everything else looks like a divergence. I used to get burnt until i started paying more attention to the last few bars especially as approaching MA
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Try looking at a 60 min chart and tell me if you see the same thing.

What I've seen several times now the ES goes down on low volume and in the last 30 minutes the market goes up on higher volume.

So what I've been trying to do is analyze the volume at the hourly level. In many down days, the majority of the volume was actually up volume.

Now I'm not sure if that is meaningful for not but I believe so.

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i just dont see it.... at least in no meaniful way. When I look at that chart.... I just automaticly start looking for resistance levels to possibly enter short. At least thats how I see it. For a LONG... Mkt here has to prove to me, I dont want to be squinting in order to see it..... in other words... Im game for scanning early shorts, but not early longs.
 
Quote from lilduckling:

i just dont see it.... at least in no meaniful way. When I look at that chart.... I just automaticly start looking for resistance levels to possibly enter short. At least thats how I see it. For a LONG... Mkt here has to prove to me, I dont want to be squinting in order to see it..... in other words... Im game for scanning early shorts, but not early longs.
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I'm not saying to look for longs, I'm looking to see who is getting stronger, who is getting weaker.

What I see is the bears are getting weaker. That's one of the things the force index measures. It's a combination of volume & price. a price drop with low volume isn't forceful.

So this could be a setup: The bears are losing energy, market is going sideways.

The entry signal for a long is to break the top of the triangle.

For aggressive traders, similar patterns can be found on hourly and 15 minute charts.
 
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