Quote:
Originally Posted by John Kicklighter
It would appear so; but I don't personally put a lot of stock into divergences in oscillators. These indicators are based on prices, so it is often repetitious and confirms itself. You should include a momentum indicator to get a different bias.
Altogether though, it is highly dangerous to fight against the strong short-term and long-term momentum behind this pair. A breakout is highly probably; so we should be exceedingly cautious in looking for a reversal. Waiting until after the weekend, lower position size, widening stops and looking for confirmation is good policy in a situation like this.
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What momentum indicator do you suggest !
Thanks !!
