20DMF

[Pascal]

The 20DMF displays positive divergences and hence indicates that shorting strength is not advised for now.


Pascal

[Pascal]

Now it is safer to short, since we are displaying a negative divergence.
A stop should be placed above the day's high and I believe that if you are day trading, the position needs to be closed 60 minutes before the EOD.


Pascal

[engr_358]

Pascal - from my studies I find that Tops in the market are a tricky call. Most have at least one re-test of the highs and often form broad arcs at the top before they show any significant pullbacks. Mostly so institutional investors can distribute their shares to the general public while continuing to talk up the bull market. Just look at the market action in early 2012...the indicators fell off after February but the market didn't have a significant pullback until after March.