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Difference between Divergence and Cool off
In Area 1, We see that Markets are making HH but RSI has made a LH, BUT this is not a divergence since its after a Cool off. Markets waited, regained its energy, readjusted RSI and the rallied again.
In Are 2, We again see Markets making HH and RSI making LH, and this is a divergence since there has been no cool off and Market has created a divergence without waiting
In Are 2, We again see Markets making HH and RSI making LH, and this is a divergence since there has been no cool off and Market has created a divergence without waiting
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