Trade Summary
Long 1 TF 779.3, +2.3
Short 1 TF 785.9, -1.0
Short 1 TF 787.1, -1.1
Long 2 TF 784.0, 784.0, +1.5, +3.5
Long 1 TF 782.1, -0
Total TF +5.2
Divergence is a powerful tool. The two best trades today,both longs, came with strong divergence signals. The first was just a few ticks from the LOD in the TF contract in early selling. The YM and ES both were busy making full structured moves. But the TF, often the smarter, checked up and held just above its low established along side the YM and ES two waves earlier. Add some big size bids showing in TF at that level, and the buy was the proverbial silver platter. The second buy came later, on a pullback, after the big initial recovery rally from those lows. Just at the moment of perceived opportunity, around 10:28am ET, the YM again made a new LOD, this time solo, while the TF spiked down into a bit of a vacuum. It bounded back up nearly four points in just a few minutes.
