Think of it differently. Look at the pattern then look at what
is happening. It is consolidating the big up move (within the
flag) and may be re-grouping itself for another move which is
(hopefully) up. The unwinding of the other indicators allows
the overbought conditions to wind down and the indicators follow
that unwinding. Doesn't necessarily mean things are headed down a
lot. Hope that helped
I personally would not call that divergence. In order to
have divergence- price should make a consecutive move in a
direction while the indicator makes a consecutive move in the
opposite direction. In this case price is not making a higher
high it is simply going sideways. The indicators are just
reflecting that fact.
Think of it differently. Look
SZYM Bull Flag
Posted by johnc on 14th of Jun 2012 at 12:45 pm
Think of it differently. Look at the pattern then look at what is happening. It is consolidating the big up move (within the flag) and may be re-grouping itself for another move which is (hopefully) up. The unwinding of the other indicators allows the overbought conditions to wind down and the indicators follow that unwinding. Doesn't necessarily mean things are headed down a lot. Hope that helped
Yah, thanks. I see what
Posted by muslhead on 14th of Jun 2012 at 12:58 pm
Yah, thanks. I see what you are saying but we cant ignore the negative divergence that has formed, right?
I personally would not call
Posted by johnc on 14th of Jun 2012 at 01:14 pm
I personally would not call that divergence. In order to have divergence- price should make a consecutive move in a direction while the indicator makes a consecutive move in the opposite direction. In this case price is not making a higher high it is simply going sideways. The indicators are just reflecting that fact.
If the technicals are showin
Posted by diablo4 on 14th of Jun 2012 at 01:04 pm
If the technicals are showin divergence and the price is consolidating sideways, that is showing strength before the next move up..