RSI Divergence Explained

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

To spot this RSI Commodity Trading Divergence trading setup find two chart points at which commodity trading price makes a new swing high or a new swing low but the RSI indicator does not do the same, thus indicating that there is a divergence between the commodity price & momentum.

RSI Commodity Divergence Example:

In the commodity chart below we identify two chart points, chart point A & chart point B (swing highs)

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

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

RSI Commodity Divergence Explanation - Commodity Trading Bullish Divergence RSI - Commodities Trading Bearish Divergence RSI - RSI Divergence Commodity Trading

How to trade RSI Commodity Trading Divergence

In order to trade RSI Commodity Trading Divergence setup we look for the following setups:

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 - two lows but the last one is higher

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

First let us look at examples of these Commodity Trading Divergence trading terms

Commodity Trading RSI Divergence Definition - Commodity RSI Divergence Explained

RSI Commodity Trading Divergence Definition - RSI Divergence Commodity Trading Described - RSI Commodity Trading Divergence Strategy Tutorial - RSI Divergence Commodity Trading Tutorial

There are two types of commodity trading RSI divergence setups:

1. RSI Classic Divergence
2. RSI Hidden Divergence