Is a divergence building in Apple?
by Chart School - October 2nd, 2009 7:28 pm
Is a divergence building in Apple?
Here’s a new video from Market Club on Apple. Adam’s following up yesterday’s DIVERGENCE VIDEO with a specific divergence he sees developing in one of the best performing tech stocks in the world, our beloved Apple (AAPL).
Adam writes: "Divergences do not mean that Apple is going to collapse, as the major trend in the stock remains firmly in the positive camp. However, it could indicate that Apple is at a highpoint for the time being."
Click here for APPLE VIDEO.
Bonus: Free Email Trading Course from Market Club. The emails cover everything from “The Psychology of Price Movements” to “The Relative Strength Index.”
Videos Galore – divergences, dollars and gold
by Chart School - October 1st, 2009 1:15 pm
Adam Hewison at Market Club has a new video out discussing the "divergences" taking place in the S&P 500 right now.
Adam uses the MACD as an indicator to highlight non-confirmations between price and the MACD (or other oscillator-type indicator). Divergences occur when a market makes a new high (or low) but the MACD indicator fails to confirm it.
In the video, he demonstrates divergences that didn’t work out, showing what to look for, and what to do if your divergence fails.
Click here to watch DIVERGENCE. >>
Adam also sent a couple videos a few days ago on the dollar and on gold.
Check them out here:
The Dollar Makes a Major Low in Q4 of 2011
Gold, It’s All Falling Into Place (update on Adam’s last Gold video)
Enjoy!
Double Divergence and Resistance in SP500
by Chart School - July 22nd, 2009 10:16 pm
Double Divergence and Resistance in SP500
Courtesy of Corey of Afraid to Trade
Structurally, after the recent rally from the 875 lows, the S&P 500 is challenging possible resistance at the 955 level which comes from both the January and June 2009 highs. We’re also picking up an internal negative momentum divergence along with a TICK (high) divergence at these levels which should call our attention. Let’s look at the structure.
Let me begin by saying there’s absolutely no guarantee price will inflect downwards off these levels, but due to these developments, it would seem that risk is to the upside and opportunity might be to the downside.
As price swung upwards off a clean positive momentum divergence into the July 8th lows, we had a new TICK High of 1,400, which was a first sign of strength. As price swung back to form a higher low – complete with 60min dojis at those lows – we then began the large momentum move up that we see to this day.
However, the momentum may be trailing off as the 3/10 Oscillator is showing divergences (which isn’t as significant as the TICK divergences – oscillators can give false overbought readings on a powerful up-move).
More importantly, the TICK is showing internal divergences with the daily high TICK reading as price has continued higher – both of these serve as non-confirmations of the recent highs.
Now that price has come into prior resistance – which also reflects roughly the 38.2% Fibonacci retracement from the May 2008 highs to the March 2009 lows – odds have shifted to favor a downside move, or at least a low-risk (stop slightly above the highs), high-reward trade opportunity.