This chart was first posted on July 19,2013.
Since then the blue horizontal line was broken to the downside and the stock market proceeded to drop.
The orange horizontal line drawn just below the blue line was broken today to the downside.
Will the market drop again?
This displays poor relative strength and negative divergence when the SCTR is down trending while the price chart is going up.
The SCTR is provided by StockCharts.com
You can see their formula in their chartschool section of their website which is very informative.
Just another tool in the toolbox.
Past performance is not indicative of future results.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.