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x_style78
19 sty 2017 08:41

SPX HOW LONG TIME NEED TO FALL? Short

S&P 500 IndexTVC

Opis

SPX Negative divergence in daily chart & the index still in horizontal move.
Komentarze
ChartArt
Answer: It was consolidation on a lower time-frame (daily) compared to a still ongoing uptrend on a higher time-frame (weekly). You always have to check if the weekly gets bearish before you start going bearish on the daily chart.



I backtested the MACD on Tradingview with the default setting and it only works profitable on the weekly chart, so I recommend to look with your indicators on the weekly and monthly charts to get an idea why it hasn't fallen - yet. (P.S. You don't use the MACD here, but the WaveTrend indicator is also a momentum indicator which behaves very similar to the MACD, The RSI is also a momentum type indicator by the way. I also recommend to add something which does not use momentum in the calculation, like the EMA 50 moving average, or a Donchian or Keltner Channel).

ChartArt
The momentum of the momentum, the gray WaveTrend histogram is showing misleading information most of the time, especially in a consolidation where the momentum slows down, but the price does not fall, because there is too much greed and demand. Here is the weekly chart without the WT histogram. You can see how nicely it bounced up from the zero line:

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