With a strong momentum gap higher the 15-min 3/10macd will naturally have a bullish reading. Determining whether the gap up will be supported or faded is more a matter of reading price than it is reading an indicator.
So, in the chart below, I would ignore the 15-minute 3/10macd and just take it at face value that bullish momentum exists and we'll either have follow-through (a break-out higher) or a fade to retrace some of the untested gap price levels.
In either case I would like to see the 5-minute 3/10macd pull back so that at least it's fast line is less than the slow line. But, as I mentioned, it's more about reading price. We had a gap up, a pullback, then a failure to recover half of the pullback. The bearish 5-minute bar closing near the lows of that morning range nicely coincided with the 5-minute 3/10macd turning negative.
No comments:
Post a Comment