Intermarket Analysis Throught Macro and Technical Methods

# 37 Complete Technical Setup: Looking for weaknesses.

Here you’ll find a complete technical setup: volume, trend, momentum, and mean reversion. Entry and exit zones are clearly defined. This aligns with or is a consequence of the macroeconomic analysis presented in the previous article.

Before we start with the setup, we leave this chart for our readers in Europe. It will be the focus of our attention in the articles to come. 

Chart of Euro Stoxx 50 and Euro Zone Liquidity. Setup

Macro narratives are lagging indicators. It is useful to try to predict them but to be able to identify price patterns and the stage the narrative is in. They are difficult to trade on a time frame, daily, weekly or monthly basis. Very useful for buy and hold traders. 

Technical Setup: Direxion Daily 3x Bear Small Cap.

Ticker: TZA

Chart showing divergence with high volume.

This is an accumulation zone. Volume is massive and the price is losing bearish momentum. 

Price chart showing an uptrend within a downtrend.
Price chart showing price at the top of a channel with high volume and weekly divergence. Setup
Price chart of Small Cap Bear 3X Shares. Setup
Chart of Small Cap Bear 3X Shares.
TZA Price Chart

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