As we can see from the graph, I drawn 3 possible future paths for the NASDAQ future: red one (decreasing), blue one (stable) and green (growing).
In my opinion, the red path is the most probable in the near future, so I'm expecting NASDAQ to fall. As we can see, the Stochastic RSI is UP, but the RSI doesn't: this divergence signals that the bearish path is the most probable.
In my opinion, the red path is the most probable in the near future, so I'm expecting NASDAQ to fall. As we can see, the Stochastic RSI is UP, but the RSI doesn't: this divergence signals that the bearish path is the most probable.