RSI Divergence Explained.
Divergence is a a disagreement between the indicator and price, and it can have significant implications for trade management.
The amount of agreement/disagreement is relative, so there can be several different patterns that develop in the relationship between price and the indicator.
Divergence can be spotted using the RSI indicator. Add it to your chart. If price makes a Higher High while the RSI makes a Lower High, you can be certain there is divergence.
What does divergence indicate?
It indicates a reversal is approaching. It’s often best to enter once the divergence has been confirmed.
Remember all indicators lag.
@CryptoTrades #education #divergence #rsi #knowledge #crypto #signals #cryptotradespremium
Divergence is a a disagreement between the indicator and price, and it can have significant implications for trade management.
The amount of agreement/disagreement is relative, so there can be several different patterns that develop in the relationship between price and the indicator.
Divergence can be spotted using the RSI indicator. Add it to your chart. If price makes a Higher High while the RSI makes a Lower High, you can be certain there is divergence.
What does divergence indicate?
It indicates a reversal is approaching. It’s often best to enter once the divergence has been confirmed.
Remember all indicators lag.
@CryptoTrades #education #divergence #rsi #knowledge #crypto #signals #cryptotradespremium
What is divergence?
Divergence is when price moves in an opposite direction to the oscillator.
What is an oscillator?
An oscillator could simply be an indicator like RSI. It’s not important to know the exact mathematics behind the indicators, but they are used to predict trend reversals.
Trading divergence using the RSI, can be very accurate and profitable.
How to trade divergence?
1. Open your chart
2. Add the RSI indicator
3. Wait for price to go on the opposite direction of the RSI
4. If price goes down and RSI goes up: BUY
5. If price goes up and RSI goes down: SELL
@CryptoTrades #education #trading #divergence #rsi #oscillator #signals #cryptotradespremium #winningsignals
Divergence is when price moves in an opposite direction to the oscillator.
What is an oscillator?
An oscillator could simply be an indicator like RSI. It’s not important to know the exact mathematics behind the indicators, but they are used to predict trend reversals.
Trading divergence using the RSI, can be very accurate and profitable.
How to trade divergence?
1. Open your chart
2. Add the RSI indicator
3. Wait for price to go on the opposite direction of the RSI
4. If price goes down and RSI goes up: BUY
5. If price goes up and RSI goes down: SELL
@CryptoTrades #education #trading #divergence #rsi #oscillator #signals #cryptotradespremium #winningsignals