I am still learning Schools. I don’t understand 7th rules(7. Ridin’ the slopes) what they explained in this.
9 Rules for Trading Divergences | Trading Divergences | High School
Can someone help me on this
What specifically are you having trouble with?
I don’t understand what this Price non confirmation(pink trend line) means here. Price Shows LowerLow whereas oscillator shows Higher Low. I believe this comes as Hidden Divergence. Why it is mentioned as NON-CONFIRMATION.
STOCH divergence is a leading indication of a potential shift in the prevailing price action (trend).
When price is making higher highs and higher lows, but, the indicator is printing lower highs and lower lows, the probability for a reversal is increased.
Stochastics alone are never enough of a reason to enter the market. But, purely looking @ this indicator it is indeed a powerful to to aide in making informed trading decisions.
Check this out: Demystifying Stochastics; Part I - #FOREX - FOREX-unlimited.com
I’m working on Part II and will be publishing in a few weeks.
Jake
Sorry,
I am still not clear.
Could you please explain in detail why we get PRICE NON-CONFIRMATION if we have Ascending slope in price chart and descending slopes indicator.