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Fig 1. Nov 15.12. Oil hourly chart up to the 5pm candle; this chart shows WTI as of exactly 6pm.

Here we see a -19% reverse RSI divergence at the 4th test of a gradual up trend line support. It is more of a range than a trend channel because of the very low angle. Support was also found on $84.93 as the previous days low making it a cluster set up. Price formed a double bottom, and RSI should have copied price with an oscillator (rsi) double bottom had momentum been neutral, but the lower print of the RSIs peak constitutes a weak positive reverse divergence. Had RSI printed higher, it would have been a bullish regular divergence as seen on November 9th.

Fig 2. WTI Nov15.12 5min chart up to exactly 17:55. Here we see the day low on the triple support of the S2 pivot ($84.73), the previous days low and the 4th test of the up trend line, all combined with a +8.8% bullish regular RSI divergence. Ive formulated RSI DIV >5% + support/resistance + trend line support as the cluster strategy, but in this case the third level makes it a cluster +1; so the probability of a reversal has increased secondary to the confluence. The Price Deceleration (a unique quantitative idea) was 1.5. When PD values are greater than 1.0, the probability of a price reversal is increased, provided the signal is outside the range and on key support. This defines a point of price instability and a tipping point between the agents. The 1min chart is next.

Fig 3. WTI 1min chart up to 17:53. Here RSI climbs +14.4%, but the signals start (Time N) and completion (Time N+1) points are the same as that of the 5 minute chart. Therefore, this momentum change was just a copy of the signal from the higher time frame and does not constitute the high momentum price reversal. The high momentum price reversal would have the 1min signal starting after the signal from the 5min chart.

Fig 4. Oil 5min Market Delta at the day low. Three bearish candles in a row have positive delta and this is very unusual is observe. This is a reversal pattern, as it is an order flow disparity, which also lines up perfectly with the hourly reverse divergence and the 5min bullish regular divergence. Given the momentum change and the factor that the bulk of the volume crossed with market buy orders, it indicates aggressive buying, which could indicate smart money was stepping in, or possible short covering.

Fig 5. Oil 5min chart. WTI retraced $0.90 from the low. Mixing a reverse divergence (rDIV) in the longer time frame with regular divergence in the inferior time frame as the rDIV completes on a trend line is a new strategy called RSI reloaded. However in this example, the reversal point was a cluster +1, with a Market Delta, delta divergence. Combining three divergence reversal signals with strong market structure outside the range, becomes a very solid multi-indicator set up.

Fig 6. 2012.09.12 SPX. Delta Divergence in same place as RSI divergence. S&P 1min chart with a -20% RSI DIV up top the 14:50 candle. Its okay to trim 1-2 candles, because Ive compared equal price level at the widest point. RSI should have been flat, but it dropped, suggesting a price reversal.

Fig 7. 2012.09.12 SPX Delta Divergence in same place as the 1min RSI divergence. Market Delta 5min delta footprint chart. The negative delta in the bullish candle shows that most

of the volume crossed as market order with sellers hitting the BID! This is a reversal pattern as was the RSI DIV signal above.

Fig 8. The same principle of momentum change shifting forward in time and turning up in the lower time frame where the high signal completes can be seen even into the tick charts. Google 10 min chart Jan 29th up to the 20:30 candle. Here we see resistance (RES) on the Jan 24th high.

Fig 9. Google 1min up to the 20:47 candle where we see a -19% bearish RSI DIV. Lets look at the tick chart for the last two candles, was there an RSI tick divergence?

Fig 10. Google tick chart up to 20:47:14. Between 20:46:12 and 20:47:14, there was a perfect double top bearish RSI DIV -20% because rsi drops from 95% to 75% across, the two 1min candles. There were 34 ticks points between the interval.

Fig 11. Google 1min chart. The stock dropped $2.50 going into the close.

Fig 12. SPX tick chart. The same interval as the AAPL tick DIV is seen here, however the SPX was already printing a double bearish RSI DIV before apple came off.

Fig 13. XOM 1min, just above 2013 highs, the stock sets a double bearish RSI DIV at 20:44. The 20:39 wick has been trimmed. Was there a tick RSI DIV at that wick and the 20:44, the last level price level which matches the RSI value?

Fig 14. XOM tick chart. The 20:39 candle has a -2% RSI DIV, and the 20:44 has a strong -15% RSI DIV which lines up with the completion of the 1min trimmed double top divergence.

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