Divergences: Comment & Response

In a recent comment, one Jutia community member asked whether or not the divergence trendlines were drawn properly for the MACD and RSI indicators. Just below the price you will see the RSI plotted and beneath it, the MACD.

The RSI was drawn correctly, however the MACD needed a slight adjustment. On a positive divergence it is important to draw your trendlines below the indicator, just touching each bottom along the way.

For the RSI and MACD indicator below I have drawn my own trendlines correctly in pink. Not my favorite color, but at least it will stand out. The trendlines drawn by the user are in green.