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Registered User
Joined: 12/18/2004
Posts: 20
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Looking at EBAY MS has dropped well below price leading it down and TSV18 has dropped below the 0 line and does not look like it will turn up soon. BOP has had several small bars below the 0 line. Would these indicator signal, indicate that EBAY will continue down from this level.
Thanks for any help with understanding how TSV,MS, and BOP all work.
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Registered User
Joined: 12/8/2004
Posts: 30
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My thoughts is support is around $98. TSV has been negatively divergent since mid September. Although MS was slightly positively divergent through mid DEC I would agree it has turned negative as well as BOP transition. These are the things DW teaches to look for in his lessons.
TSV negative divergence = look at daily chart zoom=3 notice TSV (18) peaked beginning of SEP then trended down and peaked again mid Nov to Dec BUT it did not reach a point higher than the Sep peak which it should have seeing the price was higher thus negative divergence. An easy way to see it is picture a trendline, or place a linear regression line (period 90) in the TSV window and the negative trend against the positive price is easy to see ie. negative divergence
ALSO if you lay BOP on top of TSV (18) it shows the downtrend, to the transition point, of the BOP very well.
AND you already spotted the MS divergence
Hope that helps..................
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Registered User
Joined: 12/18/2004
Posts: 20
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Thanks for the post ICanSee4Miles, your post helped a lot. I am getting a better understanding on how these indicators are used. Your explanation of what to look for on TSV was great. Also using the linear regression line on TSV and then the same regression line on price really showed the divergence clear as a bell.
One other question, I have copied one of DW’s chart templates from his notes. It has a MovAvg of 10 on TSV. I noticed that the last peak in Dec broke TSV below that 10SMA before it broke below the 0 line and never could get above it again. Do you us this also as a bearish signal?
Again Thanks for the Help
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Registered User
Joined: 10/7/2004
Posts: 1
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I am puzzled why the ETF list does not include XLK, the technology SPDR. It would be interesting to compare it to the Semi Holder, SMH.
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Registered User
Joined: 12/8/2004
Posts: 30
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Yes I think that would be bearish, but remember at the time we would not know it was going below the zeo line, which is important because then this crossover is the same as the one in mid September. Although the crossover in September did not have the positive confirmation (of a negative)of MS and BOP. Is that clear or confusing?
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Administration
Joined: 9/30/2004
Posts: 9,187
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XLK is in the Exchange Traded Funds WatchList.
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