Market Thrust Divergences

The Market Thrust indicator is a powerful tool for detecting divergences in trends. Divergences occur when:

Price is trending higher, but the Market Thrust indicator is not moving higher or is even going down.
Price is trending lower, however, the Market Thrust technical analysis tool is not trending lower, it is either not trending or is trending higher.

An illustration of the Market Thrust indicator uncovering divergences in price trend is shown below in the 5-minute chart of the mini-Dow Jones Industrial Average futures contract:

The first third of the day, the Dow futures contract increased quite impressively. However, the Market Thrust indicator was falling - an equally impressive bearish divergence. In fact, the Market Thrust line was lower when the Dow future made its high for the day, than the level of the technical indicator was when it first opened the day.

The Market Thrust indicator is a powerful confirmation and divergence technical analysis tool. A similar technical indicator is the Arms Index or TRIN (see: Arms Index TRIN)

Outline:

1. Market Thrust Defined

2. Market Thrust Divergences