[Soultrader]

Thank you ant.. very nice post. Volume divergences is a very powerful signal. I was taught this method early in my trading career from a trading buddy of mine.

I have two questions: is the volume indicator just a line chart of volume? I have never quite seen volume plotted that way but it makes alot of sense since I use a line on close TICK chart.

Also, regarding the stop loss placement I am still having some difficulties where you would actually place the stop. Lets say you were to buy right before the upper bracket limit breakout around 11314 on 9/12, you would use a 1.5pt stop from your entry?

The concept of time and breakout is something I use as well. Whenever I see price hugging the upper extreme bracket, I anticipate a breakout. I do not remember where I learned this concept but I picked it up about 2 years ago.