Thursday, July 09, 2009
Finding Transition Reversals at Different Time Frames
Yesterday I mentioned that the "transition" pattern of market reversals occurs at differing time frames. If you notice the three consecutive lows in ES this morning (chart above between 8 and 10 AM CT), you might also appreciate that they occurred on lower volume and that the last new low was not confirmed by either Russell or NASDAQ indexes. That drying up of selling led to a nice buying spurt that took us back above the day's volume-weighted average price.