If you haven't used 3C for a while or if you haven't had experience with seeing the charts, you probably don't understand the difference in signal between a 2 min chart and a 5 min chart or a 5 min chart and a 15 min chart or a 15 min and 60, it's not proportionate, it's not small like the intraday timeframes sound like.
In a "normal" bull market like 2002/3 to 2007, a divergence on a 15 min chart would produce a swing trade that could last for 1 to 2 weeks, people sometimes have a hard time being realistic about the market when they hear a long trade that lasts 2 weeks, I think they expect the market will be up every day to some degree for 2 weeks, that just isn't how the market works.
In fact, did you know that in a rip-roaring bear market, you typically have just about the same number of up days as down days, it's just the up days are much smaller (unless it's a counter-trend shakeout) and the down days are enormous, typically it's 1 down day that makes the move, this is why I prefer to have my short positions open right now and over the last several months as most are pretty close to even or even green, but when the market gets to an extreme like this (this is historic), you never know when that 1 massive day that makes you'r month or even year, is coming.
The entire area in yellow is a head fake, but there are different degrees for different moves, a small one yesterday that turned intraday trade, the large one of this entire week that should send price roaring above the triangles at some point within the next few days, perhaps it starts today.
What you have to understand is that Wall Street doesn't look at positions and set ups in terms of days, they look at a bigger picture, their trade size dictates that and maybe it's because of our trade size we have trouble seeing the bigger picture, but I'll share some first hand information with you later that will demonstrate this.
The 15 min chart is similar, "A" is the triangle's apex, it's where the test of resistance failed, it's where most shorts have their cost basis and it's where technical traders will identify the broken triangle as a likely trap when price is above and force them in to covering all at once and bam, that's why I call it rocket fuel. An easy way to remember this concept is, "From failed moves comes fast moves". From the failed test of resistance came a fast move down, when the broken triangle fails, you'll see a fast upside move.
"B" is there to give you some sense of the strength of this divergence even as a relative divergence and not leading, there's more money flow at yesterday's low than there was when SPY was trending up and at a higher price level, what does that tell you?
"C" is the leading positive divergence, a 15 min timeframe is a very powerful thing on its own, with a leading positive divergence at new 3C highs, it's way more powerful than you can appreciate in a single day's worth of trade.
"D" The head fake move, this is just pointing out the concept, if you read my articles that are linked on the member's site, "Understanding the head fake move", you'll understand why these are so important and such excellent places to open trades-very hard emotionally, but excellent.
"E" shows this week's entire head fake , but honestly this all started with the triangle.
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