Monday, August 4, 2008

Scalpers Lunchtime Reversal - 08/04/08



We have had two and half days of downtrend, which typcially allows short-term traders to start looking for indications of market reversals or a base formation.

After the European market closings, the $Tick indicated a divergence trade as it made a series of higher lows as the futures was making lower lows.




Downward momentum was also weakening as indicated by the MACD on the 630 tick ES chart.





The 380 tick ES chart shows better the double bottom forming which alerted experienced traders to go long.
Iranian and hurricane news helped this trade.
Charles

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