This last trade is the USD/CHF. The first chart is a 30 – minute chart.
There are some interesting things about this trade.
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 reading
2.19, 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.
If you look at the chart you will see that %R at 22h00 was reading
2.19, 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.
The opposite is true for bullish divergence.
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