GKP

So even if not a 123 low and it transpires pattern is ED and let's say breakout then occurs around 70, it would be typically expected to be a very strong move upward?

Thanks

Yep....as long as the low does not get taken out.

Count wrote: Thanks ws.
Maybe a naive question but is it still possible that 82 could still be the low and a 123 low pattern is still possible....109 (1), 83.25(2) .......~136(3)
I was encouraged by 86 holding at close yesterday.

nothing naive abt it count, all questions welcome that what this site is for to help all when possible....

need to see a price sustain abv 96/97p 1st and take out the high of 109 (to open up a possibility of 123 low) to negate the ED, which imo (the ED) is not a bad thing.

15-21 May seems to be crucial...

Count wrote: Thanks ws.
Maybe a naive question but is it still possible that 82 could still be the low and a 123 low pattern is still possible....109 (1), 83.25(2) .......~136(3)
I was encouraged by 86 holding at close yesterday.

Thanks ws.
Maybe a naive question but is it still possible that 82 could still be the low and a 123 low pattern is still possible....109 (1), 83.25(2) .......~136(3)
I was encouraged by 86 holding at close yesterday.

this is starting look like an ending diagonal, failure to take out n reverse off 96/97 may just confirm it.... then 87 > 82 > 70/64p likely

quick n dirty chart....

dl.dropboxusercontent.com/u/40497882/Gul...d%20%28DFB%29_ED.png

Trendfriend,

I'm a great fan of the RSI divergence because it indicates a new low forming. Most people think it shows that price is moving up - it does, but not instantly, first there has to be a new low - either a wave 5 or the completion of a C wave; then we get the rise. This is why so many 'gamblers' become disillusioned with the RSI: they don't understand what it is about. It's a strength index. What happens as a move completes? Less money gets involved, hence the lack of strength, hence the divergence. This game is all about patience.

It's a great tool to use in conjunction with Remo's 123 low tips on this board: if there's no divergence the chances of making a new low are great increased, so I keep my distance, but, if the divergence exists the chances of success are high!

As Remo has already said, be patient and wait for the break of 109 and you will reap the rewards.