DislikedThanks Alan, what is the significance of the 1.27489 level to close below?Ignored
Yes that's all that was a two bar test. If it had closed below then it would have been a continuation to the downside from the hidden divergence. Actually I adjusted the line a little later to 1.27441, the next bar pushed down to 27443 pretty accurate hey!
This is simple geometry to plot. Draw the two bar test line, put a vertical line where the next bar will open and then put a horizontal line at the intersection of the two.
This will then show us if the price is going to break the two bar test and if not it will close below the horizontal and the down move would continue.
In this case it broke the two bar test and then retested it, failed and went up again running into hidden divergence for the third time .