RSI Divergence Strategy | Increase your accuracy in trading|
why which you want a know head a trade Divergence because divergence often time the first indication the market is likely to reverse.and the divergene gives extra confirmation on reversal trade. so today i am talking on what a rsi divergence and how it find out in your chart, and how you can actually use RSI divergence in your trading.
What is RSI Divergence?
the candlestick chart when making new high that time RSI making lower high it's called RSI Divergence ,and when candles making Lower high that time RSI making higher high it's called RSI Divergence.
How to find out RSI Divergence in your chart ?
when price making higher-high in the chart but RSI indicator that time making Lower-high in the chart.it's means market trend some time after will reversal.so that is the first indication market reversal.
Now you can see image in rsi divergence and price that time making higher-high formation.
How to RSI Divergence use in your trading ?
if you want to use RSI Divergence strategy so some specific rules apply for in your trading. like that:
Don't fully depend on RSI Divergence,you should have your personal strategy because of RSI is Leading indicator, so may be posible RSI Divergence sometimes give you wrong signal.
RSI Divergence is just for increase your trading accuracy level. so don't try lonely RSI for in your trading.
if you want to more accuracy in market so RSI is one of the best indicator for you.
D.D.Chaudhary
Thanks Men For Read
0 Comments