Divergence:
Warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
For confirmation the completion of the full 5 Wave Impulse cycle, we look for the 5th Wave to show signs of divergence. This is our first indicator that we might begin to see the ABC correction starting to form.
Price going higher, however the Stochastic RSI going lower.
Warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
For confirmation the completion of the full 5 Wave Impulse cycle, we look for the 5th Wave to show signs of divergence. This is our first indicator that we might begin to see the ABC correction starting to form.
Price going higher, however the Stochastic RSI going lower.