SPY: Positive Divergence and Moving Average Breakout Take note of the higher lows in OBV and RSI. These are good signs for SPY. Today’s breakout lacked volume, the divergences lead me to believe the moving average might hold. Share this:TwitterFacebookGoogleLike this:Like Loading... One thought on “SPY: Positive Divergence and Moving Average Breakout” Add yours The basic idea here for trading pullbacks is that once price has exhibited an impulse move as indicated by a cross of the moving averages, to wait for price to pullback and then trigger a trade once price resumes it's move in the direction of the original impulse wave. With pullback trading as opposed to breakout trading, you're looking to buy on weakness after a recent strong move up or short on strength after a recent strong move downhttp://snorezips.com/ LikeLike Reply Leave a Reply Cancel reply Enter your comment here... Fill in your details below or click an icon to log in: Email (required) (Address never made public) Name (required) Website You are commenting using your WordPress.com account. ( Log Out / Change ) You are commenting using your Twitter account. ( Log Out / Change ) You are commenting using your Facebook account. ( Log Out / Change ) You are commenting using your Google+ account. ( Log Out / Change ) Cancel Connecting to %s Notify me of new comments via email.