Traders Laboratory - View Single Post - Method to Anticipate a Sell-off
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Old 08-23-2006, 02:49 PM
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Notice the opening rally. However, if you take a close look at the TICK's you will see a price and TICK divergence. Price is going up and the TICK is making lower highs. This was clearly a warning signal. If you were long it would of been a good signal to close most of your position. If you were flat it was a good signal to pick a short entry setup.

One setup I use is the breakdown of the value low pivot at 11355. I will sell the retracement back to the pivot. Notice the TICK as price broke this pivot. It went from trading in the positive territory to the negative. This was a good confirmation of a shift in market sentiment.


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