I'm a newbie. Why wouldn't the line go back to the 21st? And wouldn't that change both trends to bullish? Just trying to understand.... thanks
ritubpant
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@mnovicki, It's a divergence so we want them to go in opposite direction. In this case, the price shows Higher lows and the RSI shows lower lows which is a hidden divergence and signals a bullish trend continuation. Not sure if I am explaining correctly but this link might be helpful babypips.com/learn/forex/divergence-cheat-sheet
mnovicki
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@ritubpant, Thanks for the link.... The regular divergence makes sense to me, but I will need to think about the hidden divergence a little more before I use it.. Thanks for helping me.