Written By Basilio Chen

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The 60 minutes is one of the clear time frames used ever since technical traders have been around.  All famous ones do.

You can see a very clear counter trade in this record.

On 9/20 after a SHORT signal was identified, prices came down from the highs of 1200 to 1107  om 9/22.

  1. STO went into oversold and a parabolic move was shown as a long down candle.
  2. MACD cross over signaling a potential BUY signal.
  3. On the next bar, prices attempt a rally but resistance at the 34EMA resulted in a failed attempt (expected) as the Oversold condition is a longer time event.
  4. Prices drop back down passing the prior LOW this time to 1102 but MACD does not follow and in fact gives a Negative Divergence.
  5. At the same time STO again become Oversold and we get our last LONG signal.
  6. This time a volume extreme is recorded. ( a sort of a min-capitulation).
  7. Prices move up from this last bottom event and begins a Impulsive Rally. So we wait for MACD to cross above zero (0) as a confirmation of the rally maturing into Wave 3.  An Overbought STO condition is measured at 1150.
  8. STO becomes Oversold again but 13EMA never crosses 34EMA and more importantly no new lows are recorded and as a matter of fact the new low is at 1115, higher than the prior low at 1102.  We have a new pattern of higher lows.
  9. From there on the pattern takes off in an accelerate move.  We expect this move to last at least 1 or 2 more days with some corrections in between.