What is Volume Divergence? - Divergence in the US Markets?
Whenever we see a divergence, this means they are going through a process of moving apart or deviating from what we are seeing.
In this case the US markets, even though it appears to be trending higher, but its activities and especially its transacted volume are telling us otherwise. And what are their implications?
My name is Kon How, my work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities.
In conclusion:
Please note the divergence we are observing here; it does not indicate that the market is going to decline anytime soon.
What this means is that the bullish trend we are currently witnessing may be losing some momentum.
Therefore, it's important not to become too complacent and assume that the bull market will continue charging indefinitely. During times like these, it's always good to take calculated risks with our investments. Continue to buy on dips with cautiousness.
Micro E-mini S&P Futures and Options:
Minimum fluctuation: 0.25 index points = $1.25
Code: MES
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
In this case the US markets, even though it appears to be trending higher, but its activities and especially its transacted volume are telling us otherwise. And what are their implications?
My name is Kon How, my work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities.
In conclusion:
Please note the divergence we are observing here; it does not indicate that the market is going to decline anytime soon.
What this means is that the bullish trend we are currently witnessing may be losing some momentum.
Therefore, it's important not to become too complacent and assume that the bull market will continue charging indefinitely. During times like these, it's always good to take calculated risks with our investments. Continue to buy on dips with cautiousness.
Micro E-mini S&P Futures and Options:
Minimum fluctuation: 0.25 index points = $1.25
Code: MES
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
konhow@weipedia.com
