Bullish Closing Power Divergence Buy B7s in Series
(C) 2017 William Schmidt, Ph.D. and
www.tigersoft.com
Examples
Note that ordinarily prices must surpass 65-dma after the Buy B7s
to give us reason to buy. However, when a stock, commodity or
ETF is sufficiently oversold, these Buy B7s reliably bring rallies
to the falling 65-dma unless general bear market conditions prevail.
In reverse, the same rules apply to the CP divergence S7s.
Currently, there is no nightly downloadable file of these Buy B7s,
like there is in AUGSEL7s. We will work be working on that.
Study these. Some conditions make these more bullish than others:
1) Rising 65-dma.
2) Shallow penetration.
3) Decisive move up past 65-dma.
4) Multiple B7s
5) Positive IP21
An isolated, deeply over-sold B7 bring rally back to 65-dma in SPY |
A set of deeply over-sold SPY B7s brings a rally back
to falling 65-dma. |