RSI Oil Classic Bullish Divergence and Oil Classic Bearish Divergence Oil Trading Setups
Oil Trading classic divergence is used as a possible sign for a oil trend reversal. Classic crude oil trading divergence setup is used when looking for an area where crude oil price could reverse and start going in the opposite direction. For this reason oil classic divergence is used as a low risk entry method and also as an accurate way of exit out of a oil trade.
- Classic crude oil trading divergence is a low risk method to sell near the top or buy near the bottom of a oil market trend, this makes the risk on your crude oil trades are very small relative to the potential reward.
- Classic crude oil divergence is used to predict the optimum point at which to exit a crude oil trade
There are two different types of RSI Classic crude oil trading divergence trading setups:
- Oil Classic Bullish Divergence Setup
- Oil Trading Classic Bearish Divergence Setup
Classic Crude Oil Trading Bullish Divergence
Classic oil trading bullish divergence occurs when crude oil price is making lower lows ( LL ), but the oscillator technical trading indicator is making higher lows ( HL ).
Classic Crude Oil Trading Bullish Divergence - RSI Oil Trading Strategies
Classic bullish crude oil trading divergence warns of a possible change in the crude oil market oil trend from down to up. This is because even though the crude oil price went lower the volume of sellers who pushed the crude oil price lower was less as illustrated by the RSI indicator. This indicates underlying weakness of the downwards oil trend.
Classic Oil Trading bearish divergence
Classic oil trading bearish divergence occurs when crude oil price is making a higher high ( HH ), but the oscillator technical trading indicator is lower high ( LH ).
Oil Classic Bearish Divergence Oil Trading with RSI Indicator Oil Trading Strategies
Classic oil trading bearish divergence warns of a possible change in the oil trend from up to down. This is because even though the crude oil price went higher the volume of buyers who pushed the crude oil price higher was less as illustrated by the RSI indicator. This indicates underlying weakness of the upward oil trend.
