RSI Divergence Meaning

RSI Bitcoin Trading Divergence is one of the bitcoin trading strategy used by online cryptocurrency traders to analyze bitcoin chart bitcoin trading price movement. RSI Bitcoin Divergence involves looking at a cryptocurrency chart and one more cryptocurrency indicator - RSI indicator. For our this cryptocurrency trading divergence tutorials we shall use the RSI indicator - RSI Cryptocurrency Divergence.

To spot this RSI bitcoin divergence trading setup find two bitcoin chart points at which bitcoin trading price makes a new swing high or a new swing low but the RSI cryptocurrency technical indicator does not do the same, thus indicating that there's a divergence between the bitcoin trading price & momentum.

RSI Bitcoin Divergence Example:

In the cryptocurrency chart below we spot two btcusd chart points, point A and point B ( swing highs )

Then using RSI cryptocurrency indicator we check the highs made by RSI technical indicator, these are highs that are directly below the Chart points marked A & B.

We then draw one line on the cryptocurrency chart & another line on the RSI bitcoin technical technical indicator.

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How to trade RSI bitcoin divergence

In order to trade RSI bitcoin divergence setup we look for the following set-ups:

HH - Higher High - 2 highs but the last one is higher

LH - Lower High - 2 highs but the last one is lower

HL - Higher Low - 2 lows but the last one is higher

LL - Lower Low - 2 lows but the last one is lower

First let us look at examples of these bitcoin divergence trading terms

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There are two different types of bitcoin trading RSI divergence setups:

1. RSI Classic Divergence
2. RSI Hidden Divergence