Disliked{quote} From your example, i think I can imagine the HD. The first, second and third one, the price would have made a LL but the price has snapped back, so it didn't go the opposite direction to the RSI. For the forth one, same reason but change the side, price didnt have the change to make HH but snapped back, otherwise it would look like a regular divergence. So in all these cases, does it mean we can just trade with the direction of the RSI? i.e the first to third, RSI is stepping up, so we except price to go up. and vice versa for the forth...Ignored
The RSI is a strength indicator, price is attempting a move but has no strength. No strength means weakness the market buys or sells these weaknesses depending whether they are bullish or bearish weaknesses.
Here two more have been added...
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