Regular divergence between price and a momentum oscillator such as RSI indicate a possible trend reversal.
The scenario of price making
lower lows along with the oscillator is making
higher lows is described as regular bullish divergence - suggesting a bullish trend reversal.
The daily charts of EUR/AUD and USD/MXN have recently exhibited regular bullish divergence:
and
Analysis By
TradersLog.com
Regular Bullish Divergence EUR/AUD
Linear Mode
