Using Volume Divergence indicator on DAX this morning lead to 147 tick retracement move. Traders using the TradersHelpDesk indicators knew in advance that this move was likely to come in on all the indices across the board because the Multicharts Scanner clearly showed trend divergence with high ADX values. These divergences coupled with the high ADX values meant that it was likely to be a retracement day.
Using Volume Divergence Indicator on DAX and Indices
This morning at 6am (ET), I posted the scanner window chart on Google, facebook and twitter. We had major divergences on the Nasdaq, Dow, S&P 500 and DAX (all minis). The volume divergence indicator showed a divergence, which is a pre-cursor to the potential upcoming magenta peaks on the ADX. The magenta arrows shows the potential ticks to the ATR. Comparing all of them (using the Ticks to ATR), the best market to trade was the DAX with 147 ticks to ATR.
As many of you know, the volume divergence used in this example is trend divergence. The 180 magenta peaks also came in which caused an even further drop in price.