Another Reversal

Note the divergence of the Klinger Volume indicator at the first red arrow. This is the finest leading indicator that I have ever seen. It really is remarkable. Note that is also suggests a change in market sentiment and direction several candles before the light blue and magenta simple moving averages (7 and 23 period, as recommended by Cahne) in the same (lower) panel, represented by the 2nd red arrow. Moving Averages are, by nature, lagging indicators. They always turn following prices. It is their nature to be this way. This is why we also use the MACD, which also signaled a bearish divergence shortly following the Klinger indicator.

I suspect this one may be a short-term reversal, since the 3 minute chart shows that prices are slightly overbought. They are somewhat over-extended above the 3 minute EMA, and ripe for a short-term correction.