You Gotta LOVE Those Divergences

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True Strength Index (TSI) divergences have some terrific analysis benefits.  Here we will take a look at 3 examples, beginning with the US Dollar ETF, UUP.
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This chart will be followed by examples using CRUDE OIL and the SP-500.
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The recent top in the US Dollar was more or less a given to those who saw this negative divergence taking shape on the TSI indicator.
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USO is the ETF proxy for Crude Oil.
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This is a great example of price appearing to be stable while the True Strength Index indicator is foretelling that a massive change in trend is just on the horizon.
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SP-500 Mini-crash and current rally are important events featured on this chart.
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Not one, but two negative divergences of price with respect to the TSI indicator preceded the mini-crash of early May 2010.
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I remember thinking at the time that the SP-500 was continuing to climb on thin air.  And, well now that I look back at this chart, it was - momentum wise!
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Also, notice the more recent positive divergence that developed and correctly foretold the SP-500's final bottom.
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