bullish divergance HDR has recently had a quadruple positive...

bullish divergance HDR has recently had a quadruple positive divergance. This is when price makes lower lows but the MACD histogram makes higher lows indicating the bears cannot sustain bearish pressure. Usually a triple divergance is a powerful signal so when i saw this coupled with other indicators it was a strong buy signal.

This is a technique used by Dr Alexander elder and forms part of his triple screen trading system. It also works in reverse when a price makes new highs yet MACD begins making lower lows. I notice the pattern on your chart also madmacs and thought id share it with the group.

Using this technuiqe with a tight stop enables you to enter a trade at the beggining of a new rally.



http://www.sharescene.com/uploads/post-16-1118617433.jpg