MoneyStream™ Scan Examples
Following are some long and short examples from a MoneyStream™ Scan for September 29, 2000. We chose this day, because the DJ-30, SP-500 and COMPQX indexes were all poised for major drops from this day through Mid October - yet a MoneyStream™ divergence scan still found very good long candidates on this day (as well as short ones too). MoneyStream™ is shown in Blue and Price bars in Gray, with the Price angle line in Red. The vertical dotted line shows the day of the scan, with the plot to the right of this line showing what happened over the next 20 days.
Note the strong positive divergences in levels and/or angles in MoneyStream™ and Price for the long examples, and negative divergences for the short examples. As in all good trades, judicious use of stops would have allowed good profits in either direction over the next few days.
The real degree of divergence is obscured somewhat by the inclusion of the days following the scan date on the chart. For example, the angle divergence for 'C' and level divergence for 'HD' above do not appear very large because of the big drop following the scan date. The charts below show how the charts looked on the day of the scan - the divergence is much more obvious.
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