Tuesday, November 22, 2011

There's that positive divergence I mentioned...

I have the credit template loaded and will post findings right after this post, but take a look at what the last market update's positive divergence produced. Next will find out if this is sustainable.
That is a perfect intraday (1 minute chart) "Bull Pennant", it looks like the pennant flag that you see at a college football game or baseball, it is a bullish continuation pattern, but a VERY obvious one, which means that the market may find it worthwhile to head fake and manipulate it. Volume on the flagpole portion is perfect, volume on the pennant consolidation is flawed, it should have a smooth steady decrease in volume, instead it has some spikes in red that don't belong in the confirmed or true pattern. IT also ran in to resistance from the 10:30 a.m. rally. I'm going to take a look under the hood and see if there's anything to this or any opportunities.

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