Figure

10.1 is an MWE daily chart displaying a rising price trend during 2013,
having a run from $47 to $75. However, it also shows a deterioration and
nonconfirmation of the underlying technicals (specifically, the on-balance
volume, Balance of Power, and and MoneyStream) at the October and
November highs. Subsequently, the price pattern diverged from the trend line
and rolled over hard, and dropped back to the low $60s at this writing with two
bear wedges forming along the way!
PDCE was in sharply rising parallel up channel from June 2012 to October
2013 running from $19 to $74. However, over the final six months of the
uptrend, the new highs were not confirmed by the underlying technicals,
telegraphing some key negative divergences. Price soon diverged from trend and
rolled over at the beginning of November 2013 and moved lower.
I especially favor Worden Brothers’ Balance of Power and MoneyStream
proprietary technical indicators to confirm or deny that a trend is continuing its
momentum and have been using them regularly for the past 20 years. Following
is an explanation of what they are intended to indicate.