What is RSI Forex Divergence? - Forex RSI Divergence Meaning - Forex RSI Divergence Cheat Sheet
RSI Forex Divergence Trading is one of the forex trading strategy used by online forex traders to analyze forex chart price movement. RSI Forex Divergence involves looking at a forex chart & one more forex technical indicator - RSI indicator. For our this forex trading divergence tutorials we shall use the RSI indicator - RSI Forex Divergence.
To spot this RSI forex divergence trading set up find two chart points at which forex 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 price and momentum.
RSI Forex Trading Divergence Example:
In the forex chart below we spot two FX trading chart points, chart point A and chart point B (swing highs)
Then using RSI indicator we check highs made by RSI technical indicator, these are the highs which are directly below the Chart points marked A and B.
We then draw one line on the forex chart & another line on the RSI technical indicator.
RSI Forex Divergence Meaning - RSI Forex Trading Divergence Cheat Sheet - RSI Divergence Forex Trading Strategy PDF - RSI Divergence Guide
How to trade RSI forex divergence
In order to trade RSI forex divergence trading 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 - two lows but the last one is lower
First let us look at examples of these forex divergence trading terms
What is RSI Forex Divergence? - Forex RSI Divergence Meaning - Forex RSI Divergence Cheat Sheet
RSI Forex Divergence Definition - RSI Divergence Forex Trading Cheat Sheet - RSI Forex Trading Divergence Strategy Tutorial - RSI Divergence Trading PDF
There are two types of forex trading RSI divergence setups:
- RSI Classic Divergence
- RSI Hidden Divergence
