I need to be reminded how indicator Divergence is traded. For instance if you are viewing a Cable chart that is trending upward, but RSI trending down, would you assume that price will continue to rise as it "burns off" the initial RSI reaction? Or would it begin falling because although prices are climbing, the strength doesn't warrant the price increase and a retrace can be expected?
Please let me know if this doesn't make sense. I'll try to find a screenshot to better explain my question.
Please let me know if this doesn't make sense. I'll try to find a screenshot to better explain my question.