RUT didn't made a lower low when the other majors did. Held at
S3 (1230.7 on the futures from Friday's calculation) & on
retest of 1233 twice. Testing 1233 a 3rd time now. Wouldn't be
pressing shorts here unless Russell gets back on board strong
(breaking those 2 levels).
bulf6285- actually when you see divergences like that, it can be a
marker for a reversal in the trend, at least short term. I
know a trader who all he does is look for that on a 3 and 5 min
chart on ES vs NQ vs TF vs YM futures - generally they trend
together but when one divergences he'll look for a trigger and get
at trigger. For example if ES and YM and NQ made intra day
highs but TF did not, it can signal a short trade, and same for the
lows. It doesn't have to be the rut diverging, it could be NQ
divergence.
I've attached today's example and past examples that I've posted
here before. I always keep a 3 or 5 min chart up during the day to
look for this
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RUT didn't made a lower
Posted by a_l_ on 26th of May 2015 at 02:10 pm
RUT didn't made a lower low when the other majors did. Held at S3 (1230.7 on the futures from Friday's calculation) & on retest of 1233 twice. Testing 1233 a 3rd time now. Wouldn't be pressing shorts here unless Russell gets back on board strong (breaking those 2 levels).
RUT still holding
Posted by tsurplus on 26th of May 2015 at 02:30 pm
refusing to join the other major indexes for lower lows.
I'm a little confused by
Posted by bulf6285 on 26th of May 2015 at 03:15 pm
I'm a little confused by this...I would have thought it would follow suit
bulf6285 - actually when you see
Posted by matt on 26th of May 2015 at 03:24 pm
bulf6285 - actually when you see divergences like that, it can be a marker for a reversal in the trend, at least short term. I know a trader who all he does is look for that on a 3 and 5 min chart on ES vs NQ vs TF vs YM futures - generally they trend together but when one divergences he'll look for a trigger and get at trigger. For example if ES and YM and NQ made intra day highs but TF did not, it can signal a short trade, and same for the lows. It doesn't have to be the rut diverging, it could be NQ divergence.
I've attached today's example and past examples that I've posted here before. I always keep a 3 or 5 min chart up during the day to look for this