Trade Divergence Example - RSI Divergence Indicator Analysis

Divergence has two setups and these are bullish & bearish divergence setups. For each of these setups there is also classic divergence and hidden divergence, these set-ups are explained below.

RSI indicator is one of the oftenly used divergence technical indicator. This indicator is an oscillator trading indicator similar to the RSI & it can be used to trade divergence just the same way as the RSI.

RSI Divergence Example

RSI Indicator Divergence Example

RSI Bullish Divergence Example - RSI Divergence Indicator

Classic RSI Bullish Forex Trade Divergence Setup

RSI classic bullish divergence occurs when price is forming/making lower lows (LL), but RSI is forming/making higher lows ( HL ).

Example of Different Divergence Setups - Divergence Forex Technical Analysis in Trading

Classic Bullish Divergence - RSI Divergence Example

RSI classic bullish divergence setup warns of a possible change in the trend from downward to upward. This is because even though the price headed lower the volume of the sellers that pushed the price lower was less like illustrated by RSI indicator. This is an indicator of the under-lying weakness of the downwards trend.

Hidden RSI Bullish Trade Divergence

Forms when the price is forming/making a higher low ( HL ), but the RSI indicator is showing a lower low ( LL ).

RSI hidden bullish divergence setup occurs when there's a retracement in an uptrend.

Trading Forex Divergence Example - How Do You Analyze Divergence Setup Signal in?

Hidden Bullish Divergence - RSI Divergence Example

This divergence setup example setup confirms that a price retracement move is exhausted. This RSI divergence reflects underlying momentum of an uptrend.

RSI Bearish Divergence Example - RSI Divergence Indicator

Hidden RSI Bearish Forex Trade Divergence Setup

Forms when the price is making/forming a lower high (LH), but oscillator indicator is making/forming a higher high ( HH ).

Hidden bearish divergence occurs when there is a retracement in a downtrend.

Hidden Bearish Forex Divergence - Example Illustrations of Different Divergence Setups

Hidden Bearish Divergence - RSI Divergence Example

This divergence example setup confirms that a price retracement move is exhausted. This divergence shows underlying momentum of a downtrend.

RSI Classic bearish Trade Divergence

RSI classic bearish divergence occurs when price is forming a higher high (HH), but RSI is making lower high ( LH ).

Trade Divergence Example - Explanation Examples of Different Divergence Setups

Classic Bearish Divergence - RSI Divergence Example

RSI Classic bearish divergence signals a possible reversal in forex trend from upward to downward. This is because even though the price headed higher the volume of the buyers that pushed the price higher was less like as illustrated by RSI indicator. This is an indicator of the under-lying weakness of the upwards trend.

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