I’m in the high school part of the pipsology courses and I’m having trouble grasping the concept of hidden divergences. Does the indicator two highs/lows should be connecting flat across and the price action two highs/low should be higher/lower then each other? I need better understanding.
Divergence means something that is usually correlated but right now is divergence.
It is a powerful tool - clearly is leading, key is to figure the leader.
To learn from the present, right now one hour before S&P close:
There is a divergence - see the dbl top on price (top half of chart) and the divergence on the indicator (lower half of chart)
So if gambling is it better to buy or sell and then close at the close?