Now look at that chart and you see the bulls fail... This is where you want the divergence because a div will take the price back across the EMA or at least try to. If it does then the swing high will fail and we should see the swing low succeed which it did. Now bear in mind that is all it is required to do so a bullish div might take it back again.
The relationship between the signals and the swings is critical to understanding this.
Any questions?
The relationship between the signals and the swings is critical to understanding this.
Any questions?