The IWM is a good example of why I think patience is needed right now.
Take a look at these 4 charts...
This is the leading 1 min I showed you earlier, the concept is, as the divergence grows stronger, it migrates to longer timeframes, that's when our probabilities go up. Looking at this chart alone, I might be tempted to pick up an IWM call position, but...
At 2 min 3C is in line, this is much better than the negative it was earlier, but still not positive.
I did mention a relative 3 min divergence and there it is...
However the 5 min which is probably the fastest timeframe that needs to be positive before I'd take a position is still leading negative.
The good news is we know what Wall St. is doing in to market weakness, the bad news is we just need to keep a lid on emotions and wait for that high probability set up. At the speed things are moving, it probably won't be long.
No comments:
Post a Comment