[B]Student’s Question:[/B]
my screen shows a divergence of MACD AND a convergence of Stoch. while USDJPY makes a closing triangle near the high of a long period.
What is this telling us if both indicators are showing different “…divergences?”
Power Course Instructor’s Response:
While there is a difference between the two indicators, is it very slight to my eye. However, the story is that while price is making a high, neither indicator reflects it. Based on that, since the indicators are showing fading momentum, a short trade could be the order of the day.
On this 4 hour chart below, however, the prudent trader would be waiting for a break above or below the support and resistance levels noted in black.
