Wednesday 3 September 2008

TRIN Bullish Divergence Pattern

Two high volume days in a row. Yesterday's Emini trading volume was 2.2 million contracts and today was 2.1 million contracts. My guess is that there was a good deal of Professional buying on these 2 days.

Yesterday's action looked scary - bearish engulfing candlestick pattern with large range, high volume and closing near the lows. However, the Adjusted TRIN reading was only -52. The Adjusted TRIN (my version where positive values show buying and negative selling) normally ranges between -100 and +100. Extreme selling would register -100 but yesterday we only got -52 which shows there was Professional buying going on.

Emini TRIN Image

Adjusted TRIN and TRIN Oscillator (Emini daily)

Today we got a Bullish Divergence pattern on the Adjusted TRIN (red dot on chart above). The Emini made lower lows but the Adjusted TRIN was making higher lows. Doji candlestick pattern today too indicating indecision and a possible turning point.

Emini Hilbert Sine Wave Image

Hilbert Sine Wave Cyclical Turning Points (Emini 135 minute)

Last chart shows we've got another cyclical turning point on the Hilbert Sine Wave. These turning points on the 135 minute Emini chart (my primary swing trading time frame) have been quite accurate over the last month. We now have cyclical low turning points on the weekly, daily, 135 min, 81 min, 45 min and 27 min Emini charts!

Let's see how this turns out. Good luck with your Emini trading.