BitcoinShort
Difference between Divergence and Cool off
In Area 1, We see that Markets are making HH but RSI has made a LH, BUT this is not a divergence since its after a Cool off. Markets waited, regained its energy, readjusted RSI and the rallied again.
In Are 2, We again see Markets making HH and RSI making LH, and this is a divergence since there has been no cool off and Market has created a divergence without waiting
In Are 2, We again see Markets making HH and RSI making LH, and this is a divergence since there has been no cool off and Market has created a divergence without waiting
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.