Possible stop under C.
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, in this case RSI but other indicators can be used. Divergence is a concept that can allow a trader to see a possible reversal in the direction of price ahead of time. Generally, an indicator will move in conjunction with the price — if the price is making higher highs, then the indicator will also make higher highs. Sometimes you can see chart patterns like double tops and flags existing both, in price and the RSI.
As a rule, folks use the peaks to draw a negative, or bearish divergence, and the valleys to find a bullish divergence.
No recommendation.
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, in this case RSI but other indicators can be used. Divergence is a concept that can allow a trader to see a possible reversal in the direction of price ahead of time. Generally, an indicator will move in conjunction with the price — if the price is making higher highs, then the indicator will also make higher highs. Sometimes you can see chart patterns like double tops and flags existing both, in price and the RSI.
As a rule, folks use the peaks to draw a negative, or bearish divergence, and the valleys to find a bullish divergence.
No recommendation.