Are you not supposed to trend the lows on the RSI if you trended the lows on the price?
ChartArt
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This kind of divergence on your chart only means that the uptrend is very super strong bullish, because the price is moving steadily higher inside a trend channel.
Imagine two different rules for going up a stair:
With rule ONE you have to always go up 12 steps higher of the stair and then 10 steps back down the stair, before you go up another 12 steps up ... and so forth.
With rule TWO you have to always go up 6 steps higher of the stair and then only 1 step back down the stair, before you go up another 6 steps up ... and so forth.
With rule TWO you will have momentum decline more and more and more, while the actual amount of stairs taken higher will soon eclipse rule ONE, which will show better momentum in between than rule ONE.
ChartArt
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@ChartArt, This doesn't mean the Nasdaq can't crash next week - my emphasis was purely on momentum divergences and why they are more often than not useless when the price is in a growing trend channel.
elroytrader1
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@ChartArt, Agreed, which is why I only said warning. Uptrends have been so strong this year that few technicals work. Nevertheless I am reluctant to buy here, and equally reluctant to short, so I am sticking with individual stocks and forex !