Stock price and indicator have hidden divergence. Price is lower high, but indicator is higher high
Tips:
This is forex, not a stock. But the tips should apply as well.
2013 Nov 5, price and stochastic have a hidden divergence.
Stochastic is to value price momentum. Also can be treated as if stock overbought or oversold.
The divergence is a hidden divergence.
The hidden divergence means the price will continue the trend.
Here the trend is downtrend, means probably price will go down.
2013 Nov 5, stochastic showed overbought, possibly price go down.
The price also touched almost 50 ma, possibly price reverse down.
The price also touched almost resistance trend line, possibly price reverse down.
It is below 200 ma, should bias on downtrend. Plus this hidden divergence, it is a sell hint.
Tips:
This is forex, not a stock. But the tips should apply as well.
2013 Nov 5, price and stochastic have a hidden divergence.
Stochastic is to value price momentum. Also can be treated as if stock overbought or oversold.
The divergence is a hidden divergence.
The hidden divergence means the price will continue the trend.
Here the trend is downtrend, means probably price will go down.
2013 Nov 5, stochastic showed overbought, possibly price go down.
The price also touched almost 50 ma, possibly price reverse down.
The price also touched almost resistance trend line, possibly price reverse down.
It is below 200 ma, should bias on downtrend. Plus this hidden divergence, it is a sell hint.