Finding Divergences the Easy Way

//Finding Divergences the Easy Way

Hawk’s Scan Sentry Report January 16

Welcome to Hawk’s Scan Sentry Report. This is Sunday night with equities analysis from Jan Arps’ Scan Sentry Toolkit for the week beginning January 16.

As we all know, the S&P has been gradually making new highs since the beginning of the year. Although in late November the Triple Trender and Radar3 Trend Strength Index confirmed the most recent bullish thrust of the S&P  index (using the continuous index futures contract),  currently some of the indicators I’m looking at have not yet confirmed nor denied the likelihood of continuing this bullish trend .  We currently rest at a significant trend-line resistance.  A couple of down days and we will be looking at a Pivot divergence with Radar 1 Fear Greed and Radar 2 Price Leader. If we keep making a few more higher closes, then we can expect to see the contract  test 1330 and 1350.  I’m not predicting, but I am getting prepared.  I’m looking for both bullish and bearish opportunities and I’ll share a few of those with you here. On the charts below you will find a sampling of my watch-list for this week and some of the reasons why I find them interesting. This week many of these were identified with the Arps Auto-Divergence scanning tools… some of my favorite tools in my toolbox. Although they allow me to use any oscillator to which I have access in order to find the divergences, I prefer to format them using the Arps Radar2 Price Leader or Arps Radar1 Fear/Greed as my divergence oscillators of choice.

_____Longs_____

NU

(I like the coincidence of the Pullback 23 signal with the TE1-Oversold signal and the Bullish Trend-Divergence signal. Note that the divergence dot and trendline were plotted with the Arps Auto-Divergence tool (I thickened the line the tool drew in order to make it easier to see)).

ICE

(A nice Bullish Pivot Divergence identified by the Arps Deep Dip Double (DDD) and Deep Dip Triple (DDT) Auto-Divergence finders).

_____Shorts_____

DECK

(I like the confluence of the TE-1 Overbought signal and the Pullback 23 signal, confirming a Bearish Trend-Divergence).

BBY

(In this case, I like the first pullback into a newly synchronized Bearish Triple Trender coinciding with a bearish Pullback 23).

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only.  It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading.  Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor .

2018-01-08T08:03:04+00:00January 16th, 2012|Hawk's Picks|