# Trend Base Analysis & Divergence

Education
ASX:FWD   FLEETWOOD LIMITED
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Today, I show this example for you to understand why bullish divergence is important for an entry order.

FWD .AX is selected because VectorVest indicator RT crossover occurred on 4 May which is the same day that Stochastic (8,3,3) crossover occurred
Value of RT changed from 0.97 (3 May) to 1.03 (4 May)
Value of RT yesterday was 1.53

If you hold this stock since the crossovers occurred on 4 May, you gain 30% return so far.

For beginners, you may also try the second entry on 29 July. Why? It is simply because of the bullish divergence . And also, the price actions struggled at the Fib Ret. 38.2% as well.

Your homework is to analyse JIN.AX, using the same strategies above and the markups on the graph. Show me why JIN.AX gained 10% in one day on 11 July.