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Introduction
Dear friend ummid karta hun aap sab dost khairiyat se honge aur apna Kam samajhdar hi se aur aur apne knowledge ke mutabik successful complete kar rahe honge aaj ka hamara topic hai. Rsi divergence ..
RSI (Relative Strength Index) is a momentum indicator
Dear member showing overbought and oversold levels. If the RSI reaches above 70, it is considered overbought, if it reaches below 30, it is considered oversold. RSI Divergence strategy indicates possible entry points when the RSI trend is diverging (or going in a different direction) with the price action.
Timeframe
RSI Divergence is a possible trend reversal setup and can be used in any timeframe but more effective on longer timeframes (4H or D1) as this is where you can see primary trends of a currency pair.
Entry Strategy
Bullish Divergence - Enter a long position when price action is getting lower low and RSI is getting higher lows. Better if it occurs on oversold conditions (RSI<30). Additional confirmation may come from the appearance of an inverted hammer or shooting star candlestick or a bullish engulfing pattern.
RSI Bullish Divergence
Bearish Divergence - Enter a short position when price action is getting higher highs and RSI is getting lower highs. Better if it occurs on overbought conditions (RSI>70). Additional confirmation may come from the appearance of a hammer candlestick or a bearish engulfing pattern..
RSI Bearish Divergence
Exit Strategy
The next significant levels of support and resistance.
When RSI reaches overbought (>70) or oversold conditions (<30).
PRO Tips
Best used following a trend as it is a sign of possible trend reversal. Look for Bullish Divergence when the price is on a downtrend, and Bearish Divergence when the price is on an uptrend.
Higher probability when used with candlestick patterns on a downtrend (hammer or dragonfly Doji) or uptrend (shooting star).
Introduction
Dear friend ummid karta hun aap sab dost khairiyat se honge aur apna Kam samajhdar hi se aur aur apne knowledge ke mutabik successful complete kar rahe honge aaj ka hamara topic hai. Rsi divergence ..
RSI (Relative Strength Index) is a momentum indicator
Dear member showing overbought and oversold levels. If the RSI reaches above 70, it is considered overbought, if it reaches below 30, it is considered oversold. RSI Divergence strategy indicates possible entry points when the RSI trend is diverging (or going in a different direction) with the price action.
Timeframe
RSI Divergence is a possible trend reversal setup and can be used in any timeframe but more effective on longer timeframes (4H or D1) as this is where you can see primary trends of a currency pair.
Entry Strategy
Bullish Divergence - Enter a long position when price action is getting lower low and RSI is getting higher lows. Better if it occurs on oversold conditions (RSI<30). Additional confirmation may come from the appearance of an inverted hammer or shooting star candlestick or a bullish engulfing pattern.
RSI Bullish Divergence
Bearish Divergence - Enter a short position when price action is getting higher highs and RSI is getting lower highs. Better if it occurs on overbought conditions (RSI>70). Additional confirmation may come from the appearance of a hammer candlestick or a bearish engulfing pattern..
RSI Bearish Divergence
Exit Strategy
The next significant levels of support and resistance.
When RSI reaches overbought (>70) or oversold conditions (<30).
PRO Tips
Best used following a trend as it is a sign of possible trend reversal. Look for Bullish Divergence when the price is on a downtrend, and Bearish Divergence when the price is on an uptrend.
Higher probability when used with candlestick patterns on a downtrend (hammer or dragonfly Doji) or uptrend (shooting star).