Premarket 1M 5M EMA Divergence Example


AAPL – 20th December 2019

5M/1M EMAs remain about the same at approx 279.96 until around 7:30. A spike in price starts to accelerate the upwards trend of the 1M EMA. A bigger divergence occurs around 9:15 AM when a sharp spike in price further increases the distance between 1M and 5M 200 EMAs. However the momentum did not continue. The first bar on the 1M chart was red – almost a DOJI signifying confusion not confidence.

Price then found support at 1M EMA line bouncing a couple of times and then eventually heading lower.

Momentum from premarket’s last big move at 9:15 AM did not continue

Premarket 20th December 2019. 1M/5M EMAs diverge because of the spike in prices around 7:30 AM and then later around 9:15 AM
AAPL 1st Hour. 20th December 2019
AAPL 1M. 20th December 2019

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