Wednesday, July 2, 2008

Price Momentum Divergence

Price Momentum Divergence - Trade Setup Start Point



this chart period included 2 of my favorite trade setups - trades that have a price momentum divergence start point AND then give entry timing where there is a 'key' price reject with mex flow in the direction of the trade - through 2 breakout points WITH a left side diagonal past the breakout.

red dot sell: pmd high then a reject of the blue line at the blue square - 2 yellow square triple bottom break - trading into the left side diagonal-room to the floor pivot.

green dot: pmd low test of the floor pivot THEN a higher low reject of the floor pivot - 2 blue square triple break which is a failure break of the yellow-blue line - WITH a left side diagonal past the breakout.