SubscribeMomentum Bearish Divergence
July 23rd, 2006 • Related • Filed Under
With the same rules applying to our buying signal using divergences in momentum compared to price, we will now follow this format to find such a point to sell:
- Find the highest prince on the chart. Once this price high has been found, mark it with the letter A.
- Now move to the momentum indicator for about the same date and mark it accordingly with the letter B. This point can vary by a few days left or right of point A.
- From this point move to the left on the momentum to find the highest momentum and mark it with the letter C.
- Now move up to the price that corresponds with C.
- Mark this point with the letter D. You should now have the configuration as seen in the graph below.
- Now we can chose the lowest momentum move between letter B and C and mark it with the letter E. This point will become our selling point.
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