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