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kanch
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I think it does. One has just to study specific examples to prove this. I have studied both macd and rsi indicators and i have found out that divergence really exists. In an up trend, higher highs are made, and so with the macd and rsi levels. However, when the trend is about to reverse, on the next high (which would be the last), the macd or rsi will not show higher high. The next macd or rsi high will be lower than the previous. This is what is called divergence. It is now time to reverse trend.