In evaluating whether a positive (or negative) divergence exists on a chart, you must remember to use closing prices. If you use candlesticks like I do, it’s not always easy to spot divergences. I’ll give you an example – Baidu (BIDU). On the chart below, the top portion is a candlestick chart and the bottom portion is a line chart. Evaluating divergences is one of the few times a line chart is preferred. Take a look: