Discerning when Weekly direction opposes daily

[marginman]

It has been established that weekly direction should confirm the daily direction to increase trade success rate. Sometimes however, weekly opposes daily direction but violates some GET criteria. For Example, ADVP below looked good for a type 1 set up:

1. W4 retracement of 0.5, completed
2. 5/35 OSC pull back right at 140%
3. blue wave 4 channel held.
4. PTI > 35
5. short Ellipse drawn from minor pivot to W3 held for w4.
6. triggered with a close above 6/4 DMA high.

Looking at the weekly however shows W5 up complete so setting up for a reversal, so we have inconsistent direction. Looking at the 5/35 OSC, we see no divergence, so could W5 weekly relabel to wave 3 on further price increase. Or do u look to the barely discernible divergence of the weekly 10/70 OSC?

Today's close was right at the 6/4 DMA low, would any further price decline negate the Type 1 trade?

[marginman]

here is the weekly

[Nate McCartney]

marginman,

It is true that there is no clear divergence on the Weekly chart. That means it is not a Type Two Sell. Additionally, the Daily is questionable, with the Oscillator pulling beyond 140%, albeit a small amount. For those reasons, I would find something that was fitting better within the parameters.
However, for the sake of this discussion, let's assume that the Weekly was a good looking Type Two Sell, and that the Daily was a good looking Type One Buy. Weekly setups take much longer to develop and play out than do Daily setups, just by their nature - there are 5 Daily bars for every ONE Weekly bar. Two more bars in the up direction on the Weekly chart is not going to change the setup on that time frame...it's still going to be a Type Two Trade. However, those two bars on the Weekly represented the completion of the Type One Buy on the Daily time frame. My point is that there is still time on the Daily time frame for that Type One to play out before the Type Two on the Weekly chart comes into effect. Also, what do you now have on the Daily chart? A new Type Two Sell once the Type One has played itself out. Now you have congruance between the time frames, as both are pointing to the change in trend.

Nate McCartney

[marginman]

Ahhh.....the long awaited point of congruence....May all of our trades conform to our TA.....Many Thanks Nate

[MR]

Confluence is good too, right?!