Thursday, January 30, 2020 7:47:27 AM
Regular and REV DIV 1-2 punches
Regular - price makes LL, STO diverges higher
Reverse - price makes HL , STO diverges lower
Note the "normal" or non-divergent relationship
at the low point between the two 1-2 punch patterns:
ie; both price and STO make higher lows (so does the MACD histogram)
It's normal for indicators to mimic price action (albeit with a slight Lag)
When they show divergence to price they Lead price action
Regular - price makes LL, STO diverges higher
Reverse - price makes HL , STO diverges lower
Note the "normal" or non-divergent relationship
at the low point between the two 1-2 punch patterns:
ie; both price and STO make higher lows (so does the MACD histogram)
It's normal for indicators to mimic price action (albeit with a slight Lag)
When they show divergence to price they Lead price action
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