in school of pipsology it stands:
"In order for divergence to exist, price must have either formed one of the following:
Higher high than the previous high
Lower low than the previous low
Double top
Double bottom"
what about if price makes lower highs and the oscillator makes higher highs. isnt this a signal for regular bullish divergense / reversal of current trend.
and if price makes higher lows and oscillator makes lower lows. thats a signal for regular bearish divergence.
but school of pipsology says look only for higher and lower low, not lower high and high lows.
am i missing something?
and whats wrong with the trade here?
on CADJPY Cross-Eyeing: Bearish Divergence on CADJPY - Trade Closed
price makes lower high and the oscillator makes high high reaching overbought area = hidden bearish divergence = trend continuation.
