Normally, you would expect to see negative divergence on the
MACD and/or RSI prior to a large trend reversal BUT that isn't
always the case. Further, you could get a substantial
pullback allowing for the osciallators to unwind before making
another push higher creating the divergence (I have shown some
examples of this in prior updates).
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Normally, you would expect to
MACD divergence
Posted by steve on 11th of Aug 2009 at 12:09 pm
Normally, you would expect to see negative divergence on the MACD and/or RSI prior to a large trend reversal BUT that isn't always the case. Further, you could get a substantial pullback allowing for the osciallators to unwind before making another push higher creating the divergence (I have shown some examples of this in prior updates).