How Do I Trade RSI Divergence Signals
How Do You Analyze RSI Divergence Strategies?
RSI Trade Divergence XAUUSD is one of the xauusd setups used by traders. RSI Indicator XAUUSD Trade Divergence setup involves looking at a chart and one more indicator - the RSI indicator.
To analyze this RSI divergence setup - a trader will look to find two chart points at which price makes a new swing high or a new swing low but the RSI technical indicator does not - and this will indicate a divergence between price & momentum.
RSI Divergence Example - How to Analyze RSI Indicator Divergence - How Do I Trade RSI Divergence Signals
On the chart example shown below - two chart points are identified, point A & point B - swing highs.
Using RSI indicator - the highs made by the RSI indicator are then analyzed - these are the highs which are directly below chart point A & chart point B.
One line is drawn on the chart and another line is drawn on the RSI indicator - How to Trade RSI Divergence Signals? - How Do I Interpret RSI Divergence Strategies.
Interpret RSI Indicator Divergence - How Do You Trade RSI Divergence Signals
Interpret RSI Indicator Divergence - How Do I Trade RSI Divergence Signals
In order to trade this divergence 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
Explanations of these terms How Do You Interpret RSI Divergence Strategies
How Do You Interpret RSI Divergence Strategies
How Do I Interpret RSI Divergence Strategies
There are two types of divergence setups:
- Classic Divergence - RSI XAUUSD Classic Bullish Divergence and RSI XAUUSD Classic Bearish Divergence
- Hidden Divergence - RSI XAUUSD Hidden Bullish Divergence & RSI XAUUSD Hidden Bearish Divergence
Interpret RSI Indicator XAUUSD Trade Divergence
