InterDigital Inc (IDCC)

[plumear]

Yes, the price is falling, and the other short term indicators could reverse and trendlines need adjusting. Being a five minute chart, it only shows whats going on in the very short term. Notice that the divergence only is for this one day. However, many traders, especially short term traders, will use the short term indicators along with trend lines and support resistance areas to start looking for a point to buy or sell in at when they see divergences. As the charts get longer term, the signals get more dependable but can also be a little late in determining where the actual bottom is. Still, longer term traders will generally use the longer term charts for decision making.