You see a pronounced negative divergence as shown in magenta lines:  the price makes a new high while MACD makes a lower high.  A screaming sell?!  But look at DMI.   The ADX is a whopping 42.58, in other words, very strong trend!  Last night was the earnings report and the price is now up 15.30% in pre-market trading!!
When ADX is greater than 25, the oscillators should basically take the back seat!  Don't be fooled!
 
No comments:
Post a Comment