Stoch(5.3.3) making Higher-High but Price is making Higher-lows.
This is happens in a down-trend. It is Hidden Bearish divergence.
But according to Elliot-Wave Theory. The price in above Chart has yet to make A new high and then follow the Down trend.
That means in recent periods of daily candles it should firmly make another Higher - High but stoch should Also make another Higher High..If stoch now make higher low, it will mean that Price is Still in Up-trend.
This indicates the recent low in stoch should extend and go below previous LOW, it means, it should make a Lower-low. On other-side, the price should not go Beyond 1.21300, the Price should make Lower-High.
That will mean the pair is still in UP-trend
But most importantly, the High of wave C should also produce High in stoch(5.3.3)
On weekly chart, stoch should make higher-high but price should not go beyond 1.27500 area.
Making a hidden Bearish divergence. And Fix that Down-Trend.
Ray
No comments:
Post a Comment