Breaking Down The Failed Divergence Trade Rob Wanted And Got!

Welcome back everyone!

We talked yesterday about the failed divergence trades. I identified the situations where we were making lower lows in the indicators. We were also making higher highs in prices. That is a negative divergence. We barely pulled back and that means that the sells didn’t really sell. I wanted to then see if we could break out above the trend lines. We ended up doing the latter. That led to an ongoing failing divergence. When the sells don’t sell, it is time to buy.

That is basically what happened. We were all about it this morning. Everything ended up taking off. We had a wave one push to the upside. We also had a wave two. That is when we get really active. We are really pushing hard during those. I am looking to go long at the highs. You will then have to sit through some of the pull backs. You can also take the trades on the pull backs into the speed lines.

That means we should have one more higher high. We did get that final higher high. Wave one was okay, wave two was great, and wave three was okay. I took trades right in front of the students in the Live trading Room this morning. My Institutional Trader Indicators were firing off like crazy. Wave three led to a negative divergence. That is why we backed off and were done. I had to close out all my long positions.

We got the failed divergences that I was talking about in my previous videos. That all culminated into additional trading opportunities into this morning. I told you all about that in yesterday’s videos. I want to see if we can get a resurgence into the afternoon.

The RUSSELL is not doing as well as the NASDAQ and such. I want to see if the RUSSELL will power ahead. I will look for additional longs in our favorite indices.

Don’t forget that later today I will be showing some more setups and trading strategies to tie in with insider trading. How do you take the stories of insiders taking stocks, and combine it with technical buys and sells? I will be kicking off a class today. You can go to to sign up.

I hope to see you all at this even tonight!

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