RSI Divergence CFDs Trading Indicator Technical Analysis

Divergence trading has 2 setups & these are bullish and bearish divergence set-ups. For each of these cfd setups there is also classic divergence and hidden divergence, these cfd setups are explained below.

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

RSI CFD Trading Divergence Example

RSI CFD Indicator Divergence Example

RSI Divergence Indicator

Classic RSI Bullish CFDs Trading Divergence Setup

RSI classic bullish divergence forms when price is forming lower lows (LL), but RSI technical trading indicator is making higher lows ( HL ).

RSI CFD Divergence Example

RSI classic bullish divergence setup warns of a possible change in the cfd trend from down to up. This is because even though the cfd price went lower the volume of sellers that pushed the cfd price lower was less as shown and illustrated by the RSI technical indicator. This is an technical indicator of the underlying weakness of the downwards trend.

Hidden RSI Bullish CFDs Trading Divergence Setup

Forms when price is forming a higher low (HL), but RSI technical trading indicator is showing a lower low ( LL ).

RSI hidden bullish divergence occurs when there is a retracement in an upwards cfds trend.

CFD Hidden Bullish Divergence - RSI CFD Divergence Example

This divergence example setup confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an upward cfds trend.

RSI Divergence Technical Indicator

Hidden RSI Bearish CFDs Trading Divergence Setup

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

Hidden bearish divergence setup occurs when there is a retracement in a downwards trend.

CFD Hidden Bearish Divergence - RSI CFD Divergence Example

This divergence example setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards cfds trend.

RSI Classic bearish CFD Trading Divergence Setup

RSI classic bearish divergence forms when the price is forming higher high (HH), but RSI technical trading indicator is making lower high ( LH ).

CFD Classic Bearish Divergence - RSI CFD Divergence Example

RSI Classic bearish divergence warns of a possible change in cfd trend from up to down. This is because even though the cfd price went higher the volume of buyers who pushed the cfd price higher was less as illustrated by the RSI technical indicator. This is an technical indicator of the underlying weakness of the upwards trend.