The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Divergence Analysis

Figure 9.98 Forecasting Reversals in Silver via Inter Contract Divergence.

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Figure 9.99 Forecasting Reversals in Brent Crude Oil via Inter Contract Divergence.

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9.6.1.3 examples of price to net Commercial (COt report) Divergence

Though a reading of the entire COT report is necessary for a proper analysis,

we shall only focus on the historical open interest relationship between the USD

Index Futures and the net non‐commercials for the purpose of this brief analy-

sis. In Figure 9.100, we observe that the net non‐commercial activity exhibited