Concept
Momentum Divergence
When price makes a new high (or low) but momentum indicators (RSI, MACD) do not confirm. In Elliott Wave analysis, divergence between Wave 3 and Wave 5 is extremely common and signals that Wave 5 is completing.
When price makes a new high (or low) but momentum indicators (RSI, MACD) do not confirm. In Elliott Wave analysis, divergence between Wave 3 and Wave 5 is extremely common and signals that Wave 5 is completing.