This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I think the best compromise, for me anyway, may be using the bull/bear power indicator on range charts. It doesn’t seem to work on the change charts. I didn’t take this trade, because I was either looking for a double top or Trader Vic 2B setup. I didn’t get either.
However, look at the divergence on the bull power (top indicator). As price fell, it reached new momentum lows on the bear power. I think the key (as Elder lays it out) is using both indicators simultaneously. On the limited intra-day data that I have, it does an excellent job keeping you on the correct side of the market. I like to trade reversals (and even breaks when I identify them correctly), and this is helping.
Btw, I didn’t have the 24 hour session up yesterday, and missed an ideal setup. I should actually post that chart later. It really showed the divergence on the two indicators and price coming out of the gate (compared to the 9:00 am eastern run up).
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
