Time divergence trainingPlease note that the price was able to move from the ceiling during the time period specified in the box, but in the same time box, it could not return that way and it was filled within time. What it means in the market is that the power of buyers is more and there is a positive time divergence.
Divergencepattern
Dark Pool Buy Zones in Bottom FormationsIt may be difficult to be optimistic about the future at this time, but it's the BEST time to be on the lookout for Dark Pool Buy Zones in bottom formations.
When it's all doom and gloom is when the largest buy-side institutions are accumulating bargain-priced stocks, acquiring their huge lots of shares as the last of the small-lot sellers capitulate.
Therefore, divergences are important to think about for identifying where the Dark Pools are accumulating. For example, FIZZ was still moving down when the Accumulation/Distribution indicator started rising. This is a very likely Dark Pool buy zone.
Entry requires confirmation that the bottom is likely to complete soon, but this early divergence pattern gives both traders and investors lead time on a good entry at some point down the road.
I'm teaching more about how to identify Dark Pool Buy Zones TODAY at the MetaStock Traders Conference. It's a FREE event with many other trainers. I'll be on at 3 pm ET. Hope to see you there!
Determine Trend Reversal Using RSI Indicator With Price Action1. Price created lower low and RSI higher low (tight divergence - oversold).
2. Reversed on demand zone with candlestick pattern.
3. Broke down trend structure with retest as confirmation.
4. Price went above 200 EMA and used it as support.