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Old 10-26-2006, 01:06 AM
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Re: Trend Trading vs Counter Trend Trading

I watch the volume for exhaustion along with S/R. I use equivolume chart for that. The best indication of continuation after seeing a divergence reversal is seeing higher high and higher low until it stops making higher highs/higher lows. I use force index because it's vollume based, momentum is price-based. I use force index for opening while momentum is for daily charts possible reversals.

Here's an example.


Many times divergence don't work because price doesn't confirm it, meaning it prices need to go in the direction of the indicated direction for the trade to work. Confirmation is key.

I don't watch the clock although I'm aware of the possibility of its influence. The clock has more influence in the afternoon IMO, around 2pm.


Last edited by torero; 10-26-2006 at 01:19 AM.
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