This last trade is the USD/CHF.
The first chart is a 30 – minute chart.
There are some interesting things about this trade.
I have also included the channel lines as these can really help put thing in perspective.If you look at the chart you will see that %R at 22h00 was reading2.19, RSI at 22h30 was 77.01 and MACD was 0.00242.This all happened in the vicinity of point A on the chart.As you can see MACD and RSI started to turn down as expected but then the market continued up to make a slightly higher high at point B. This is called bearish divergence.
This happens when an indicator turns down but the market makes a new high.The opposite is true for bullish divergence.
0 comments:
Post a Comment