Charts - 5min
- Chris Speed
- Oct 27, 2015
- 1 min read
In understanding the overnight gap, I have begun to analyze the 5 min charts prior to the close.
The chart below is showing high buying pressure above the green line on the MovingAvgTwoLines, which indicates a sell off should be coming soon.
The MACD, however is not showing any separation in the two lines and they are both below the 0 line. I am never certain about the indications of this study, the things I look for are a crossover between the two lines and above or below the 0 line. The bars should be either in a inclining direction or declining.
The RSI is around 61, which is rather high but not overbought, also indicates a sell off coming.
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