By EOD yesterday, 5min charts were showing clear signs of negative divergence,so today's morning session was supposed to show a dip. But this dip was expected to be contained by following two channels:
Yesterday's Post:
.png)
Today's Update:
.png)
And I didnot anticipate such big fall because on Hour time-frame there was no negative divergence. Only the 5 min charts had displayed weakness so I expected a dip of 40 odd points only.
But, as I have mentioned previously also--- anyone who was observing momentum as we were testing the lower trendlines on the two illustrated channels, no positive divergence or weakness of downmove was getting noticed---- thus an astute observer would not have gone long at these supports.
It once again confirms my earlier advice-- all probable supports/resistances(whether fibo, channels, AP tool or other methods) have to be seen in sync with momentum studies to initiate any trade.
Now what??
EW labels are now indicating to 5585-5565
.png)
And as we were breaching channels in the afternoon, I couldnot help noticing the wolfe:
.png)
Yesterday's Post:
.png)
.png)
And I didnot anticipate such big fall because on Hour time-frame there was no negative divergence. Only the 5 min charts had displayed weakness so I expected a dip of 40 odd points only.
But, as I have mentioned previously also--- anyone who was observing momentum as we were testing the lower trendlines on the two illustrated channels, no positive divergence or weakness of downmove was getting noticed---- thus an astute observer would not have gone long at these supports.
It once again confirms my earlier advice-- all probable supports/resistances(whether fibo, channels, AP tool or other methods) have to be seen in sync with momentum studies to initiate any trade.
Now what??
EW labels are now indicating to 5585-5565
.png)
And as we were breaching channels in the afternoon, I couldnot help noticing the wolfe:
.png)
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