A long way back I mentioned a "swing failure" using the RSI indicator to a poster who used the RSI divergences extensively and I always meant to give an example.
The swing failure is a normal divergence in the RSI and price but with a very strong twist, it is rare and when it does occur the result is usually very strong in the direction of the failure. I was looking at ANW today and noticed almost the perfect example of a bearish swing failure back in October and the subsequent slide in the sp - I hope this explains it.
As I have noted you can reverse everything for a bullish swing at the bottom of a trend.
Hot Copper Charting and Chat, page-284
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Last
4,593.7 |
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| Open | High | Low |
| 4,593.7 | 4,617.9 | 4,584.6 |
| XTL (ASX) Chart |