Tuesday, January 13, 2009

Reviewing Monday's Potential Trades 01/12/09

In a trending market, potential high-probability trades often occur on tests of actual pivots in the market. the 5-minute chart is a good tool to identify those pivots.

At 1046 ET on a test of a 50% correction, we get a $TICK bearish divergence as the market tests this level twice. A good indication that the market is ready to continue the bearish trend.

At 1242 ET, we get a similar $TICK bearish divergence following a 3-wave correction and test of a low pivot on the 5-minute chart.

At 1256 ET, we again get a $TICK bearish divergence on test of the same low pivot on the 5-minute chart.

At 1420 ET and 10 minutes prior to the Energy Market Close, the $TICK starts to show weakness as the market test a low pivot on the 5-minute chart.


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