strength remains intact despite some unwinding. A major technical event is unfolding at the moment, pitting against price, whereby a POSITIVE (not ) Divergence is underway.
Albeit rarer, Positive Divergences offer the single most discreet technical signal of impending move. While this divergence remains incomplete at the moment, our outlook remains .
David Alcindor | 4xQuad.com
Alias: 4xForecaster (Twitter, LinkedIn, StockTwits)
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According to the original author of RSI (Mr. Welles Wilder), negative divergences occur in sustained bullish trends (yes, bullish, not a typo). Inversely, bullish divergences will be seen one after the other in bearish trends (yes, here too, not a typo).
In contrast, positive/negative divergences are rarer technical phenomena that will point to the imminent direction of price.
This is a concept that is most often overlooked, and quite frankly ignored by most traders. Institutional educational outlets do not even touch on it for obvious reasons, since they teach from accounts where the trader opens position against these very institutional traders.
Worth looking it up ... Google it if you have time.