Forex Divergence Cheat Sheet - RSI Divergence Indicator Technical Analysis
RSI indicator is one of the commonly used divergence trading indicator. This indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.
RSI Technical Analysis and RSI Forex Trading Signals
RSI Divergence Indicator
RSI Bullish Divergence Setups - RSI Divergence Indicator
Classic RSI Bullish Divergence
RSI classic bullish divergence occurs when price is making lower lows (LL), but the RSI is making higher lows (HL).
Classic Bullish Divergence - RSI Forex Divergence Cheat Sheet
RSI classic bullish divergence warns of a possible change in the forex trend from down to up. This is because even though the price went lower the volume of sellers that pushed the price lower was less as illustrated by the RSI indicator. This indicates underlying weakness of the downward trend.
Hidden RSI Bullish Divergence
Forms when price is making a higher low (HL), but the RSI is showing a lower low (LL).
RSI hidden bullish divergence occurs when there is a retracement in an uptrend.
Hidden Bullish Divergence - RSI Forex Divergence Cheat Sheet
This setup confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an uptrend.
RSI Bearish Divergence - RSI Divergence Indicator
Hidden RSI Bearish Divergence
Forms when price is making a lower high (LH), but the oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in a downtrend.
Hidden Bearish Divergence - RSI Divergence Trading Cheat Sheet
This setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downtrend.
RSI Classic bearish divergence
RSI classic bearish divergence occurs when price is making a higher high (HH), but the RSI is lower high (LH).
Classic Bearish Divergence - RSI Forex Divergence Trading Cheat Sheet
RSI Classic bearish divergence warns of a possible change in the forex trend from up to down. This is because even though the price went higher the volume of buyers that pushed the price higher was less as illustrated by the RSI indicator. This indicates underlying weakness of the upward trend.