Saturday, April 2, 2011

Fading The High 04/01/11

It becomes safer to fade a new futures high - Tick bear divergence when the market is testing daily resistance levels, such as the upper band on the daily Keltner channel. The bearish Tick divergence at 1333.75 turned out to be Friday's high. I thought that the market would stay above the 0930 ET open, but as we now know, the market didn't find support until it reached Thursday's high. This fade is less successful when the market is reversing from a test of a daily support level.


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