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Biotech / Medical : momo-T/FIF -- Ignore unavailable to you. Want to Upgrade?

To: quidditch who wrote (4635)	5/27/2006 9:24:13 PM
From: SnowShredder	Respond to of 12215

Hi quid, Usually the price and the indicator support each other (if the price makes a lower low indicator creates a lower low as well, etc.). In the case of a divergence they contradict each other. Here the index price formed a lower low, as a result one would expect the indicator to make a lower low as well. In actuallity, the indicator formed a higher low. The creating a divergence and a potential change in trend. Here is a link to a explanation of RSI divergence... "Bearish and Bullish Divergence between price and the relative strength index can forecast possible trend changes in a stock's movement." stock-charts-made-easy.com bwdik? Have a great weekend. Best of Luck, SS