CFD Trading RSI Divergence Discussed
RSI CFD Divergence CFD is one of the cfd strategy used by online cfds traders to analyze chart cfd price movement. RSI CFD Divergence involves looking at a cfd chart & one more cfds technical indicator - RSI indicator. For our this cfd divergence tutorials we shall use the RSI indicator - RSI CFDs Divergence.
To spot this RSI CFD Divergence setup find 2 chart points at which cfd price makes a new swing high or a new swing low but the RSI technical indicator does not do the same, thus indicating that there's a divergence between the cfd price & momentum.
RSI CFD Divergence Example:
In the cfds chart below we identify two chart points, chart point A & chart point B ( swing highs )
Then using RSI indicator we check highs made by RSI technical indicator, these are the highs that are directly below the Chart points marked A and B.
We then draw one line on the cfds chart and another line on the RSI indicator.
RSI CFD Divergence Meaning - CFD Trading Bullish Divergence RSI - CFD Trading Bearish Divergence RSI - How Accurate is RSI Divergence CFD
How to trade RSI CFD Divergence
In order to trade RSI CFD Divergence setup we look for the following setups:
HH - Higher High - two highs but the last one is higher
LH - Lower High - two highs but the last one is lower
HL - Higher Low - two 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 CFD Divergence trading terms
CFD Trading RSI Divergence Described
RSI CFDs Divergence Definition - RSI Divergence CFD Explained - RSI CFD Divergence Strategy PDF - RSI Divergence CFD PDF
There are two types of cfd RSI divergence setups:
- RSI Classic Divergence
- RSI Hidden Divergence
