Weekly Recap: In my last weekend update I suspected that we are going to see some correction and the week started with a three day correction that breached the 4 hour trend line on Wednesday afternoon but did not close below. Instead it turned around in the last hour of the day and started going up to make an all time new high by the end of the week. What I see now is a negative divergence between price and OmnilayerRSI indicator on the 4 hour and daily charts, but I don’t see anything on the weekly other than a very overbought condition, so probably some kind of correction/consolidation movement is expected in the midterm but another high in the long term.
In the short term there are currently no signals, I expect some kind of a pullback towards the trend lines so I will look for reversal trades, but only a close below the daily trend will convince me we are finally in for a bigger correction.
Battle Plan for the 11/25/2013
No signals for now, let’s see where the market takes us in this thanks giving short week.
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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