What is RSI Forex Trading Divergence? - Forex RSI Divergence Definition
RSI FX 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 Trading Divergence.
To spot this RSI Forex Trading 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 Explanation - Forex Bullish Divergence RSI - Forex Bearish Divergence RSI - How Accurate is RSI Divergence Trading
How to trade RSI Forex Trading Divergence
In order to trade RSI Forex Trading 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 - two lows but the last one is lower
First let us look at examples of these Forex Trading Divergence trading terms
What is RSI Forex Trading Divergence? - Forex RSI Divergence Definition - Forex RSI Divergence Explained
RSI Forex Trading Divergence Explanation - RSI Divergence Forex Trading Explained - 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
