Today’s entry will highlight a Cycle Sell Short Setup that we identified in real-time during Thursday’s session in the PTG Chat Room. This was a brilliant divergent short setup indeed. During much of the open range price action chopped around with no real directional bias. It wasn’t until buyers pushed price to new marginal intra-day highs that sellers responded aggressively, setting up a shorting opportunity for traders.

As you can see from the chart above, as price pushed to new highs there was no corresponding momentum to support the move creating a negative divergence. At the same time there was a Cycle Sell Signal that nailed the high of day confirming that a short trade should be considered.

Sellers continued to push price lower until the open gap was filled. Brilliant trade indeed!!