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The "Street Smarts" Spike & Ledge pattern technique is an excellent
way to trade these with limited risk. You enter just past the extreme
caused by the first reaction off the spike (the ledge) with your stop
just past the reaction off that level. I use it quite frequently on 5
min. bond bars, especially on the big number days (GDP, PPI, CPI, and
the BIG Kahuna, EMPLOYMENT!!! - which, by the by, is coming up this
Friday!)
Bob Hunt
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BrentinUtahsDixie wrote:
>
> Pompatis et al,
>
> Sore Thumb divergence is my own term for an obvious divergence where an
> isolated spike high is made and divergence indicators like RSI, Stochastic,
> Momentum etc. show a divergence with that new high. If you are not familiar
> with the saying "something(it, she, he, whatever) sticks out like a sore
> thumb" it means something is obviously different about something compared
> to the others around it.
>
> Brent
>
> ----------
> > From: POMPATIS@xxxxxxx
> > To: brente@xxxxxxxxxxxx; realtraders@xxxxxxxxxxxxxx
> > Subject: Re: Sore Thumb divergence in the Dow
> > Date: Friday, September 25, 1998 2:51 PM
> >
> > In a message dated 98-09-25 02:31:26 EDT, brente@xxxxxxxxxxxx writes:
> >
> > << Yesterday we had a sore thumb divergence in the Dow off the recent
> high. We
> > go down some more now I think. >>
> >
> > Dear Brente:
> >
> > I would be grateful if you would briefly explain what is a "sore thumb
> > divergence",
> > I am not familiar with this term.
> >
> > Much gratitude,
> >
> > Pompatis
> >
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