Hi, >>Am I correct in my analysis that this constitutes bearish hidden divergence, and the probability exists that the downtrend will resume?
I don't know what you mean by "hidden", simply a divergence is : the price makes a second top higher ( or flat at the same level ) and the momentum's second top is lower ( weak ) A downtrend could appear. Sometimes there are three tops before the price collapse. I know no rules concerning volumes. I can't say anything. BTW, it would be nice to draw automatically such divergence with an AFL formula... Best regards --- In [email protected], "Gerard Carey" <gcfina...@...> wrote: > > I'm attempting to sharpen up my `Hidden Divergence' skills. > The .doc attachment shows a recent period on the S&P500 chart where I > have attempted to define an instance of `Hidden Divergence'. > I'd appreciate your comments as to my analysis. > Also links to sites that have useful explanations. > > The .jpeg attachment shows the chart with greater clarity, but without > my waffle. > > Regds, good trading, and Merry Christmas, > Gerard > > -- > http://www.fastmail.fm - Access your email from home and the web >
