Hidden Divergence on Dow Nets Over 80 Points

Hidden divergence on Dow nets over 80 points (using the emini Dow Futures).  Price was moving overnight and the first hidden divergence emerged around 5:12 am.  Immediately prior to the market opening, another pattern formed and the entry was at 23902.

Hidden Divergence on Dow Nets Over 80 Points

The chart below shows the first divergence and the following one.  Basically, price was making higher lows but the Stochastics was making lower lows.  While you could have waited for the reversal bar to come in at the market opening, the lower risk trade was the previous bar, close less than the open with the Stochastics oversold.

Hidden Divergence on Dow

About Gail Mercer

Gail Mercer, Founder of TradersHelpDesk, is a highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators.

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