- Divergences form when a new high or low in price is not confirmed by the Oscillator (Check).
- A forms when price records a lower low, but the Oscillator forms a higher low (Check).
- A can be confirmed with a resistance break on the price chart or a Oscillator break above 50 (Check)
- Stochastic Oscillator cross above 50 signals that prices are trading in the upper half of their high-low range for the given look-back period (Check).
- A strong close above $210 is all we need for 100% pattern completion (TBD).
Entry - $210-215
Stop - $185ish
Target - Hold