Follow Up IBM

Earlier today I opened a 25% of a normal size position short IBM at $210.74 which is at a small profit on the close. The point was to phase in to the trade as it seems to offer pretty good risk/reward here, but to leave room in case there's a better entry which i averaged in to the position.

Here's how IBM traded the rest of the day which was interesting, actually it was what I'd like to see.

 The 1 min chart put in a small positive divergence in the early afternoon, it was small though.

 Note on the 3 min chart it is barely noticeable, but the negative divergence in to the slightly higher prices it caused it quite noticeable as we go through the timeframes.

 5 min, what I want to point out is the divergence between 11 a.m. and 2:30 pm

 On a 10 min chart the positive divergence isn't even there, it was just enough to get price moving up a bit, the negative divergence on the 10 min chart is leading and much bigger, so there was a small amount of support for prices which looks to have been sold in to in a much bigger way.

 The 15 min chart picked up on it as well

 And even though the 30 min chart is already in a leading negative trend position....

The 30 min chart intraday also picked up on the negative divergence in to the afternoon highs.

Volume also picked up in that area, it wasn't huge and we don't want to see huge, but it was increased and that is what we do want to see. Huge volume would give away their element of surprise, but slightly rising volume most people won't think twice about, it's often the small things that make all the difference, as it has been said," It's the things the crowd misses".

All in all, a good day in IBM and I'm happy to have started the position there.