If a divergence is the strongest signal in technical analysis
, why wouldn't a failed divergence be as strong, but in the opposite direction? I have been holding a long position in gold
for one month, and yesterday I got stoped out. I immediately reversed my position, got stoped at 1264 and went short at 1265. I have a long term bullish
bias in gold
, so at 1200 I will be looking for longs. Fundamentaly, I understand that gold
is close to a crash, and the fundamental analysist that said this is right more than 90% of the time. My stop is at 1298, and I will be adding using the H1 and the H4 chart.