Charting and Studies User Guide - CQG.com

Page 555
The second chart is a 30 minute and uses the Volatility Time Bands with compute 1, 2 and 3
deviations around the opening price and quantify what is normalized and extreme behavior for
that specific time of day. At point B the 3 rd Band represents that limit and when is combined
with Range Deviation daily limit, provides a low risk opportunity.
The third chart shows the power of multiple timeframe extremes as at Point C the 60 minute is
also at the 3 rd Deviation that was at Point B in the 30 minute chart. All three separate
timeframes are all signaling an extreme at the same time.
The second and fourth charts at Points in E, D and F highlight the combination of divergence
entry’s and then the optimum exit point for a day trade. The 4 arrows at Point E are multiple
divergences placed through the Rsi. The pattern does not reference absolute high lows for
quantifying divergence, but looks for divergence through a variety of relationships beyond that,
such as the High/Low/Close divided by 3 and looks for multiple pattern synergies on the same
bar. This means that divergence can be signaled not just against the trend, but in sideways,
thereby signaling an imminent break out, or as divergence as a continuation of the existing
trend.
Charting and Studies User Guide