Best Divergence Indicator

Best divergence technical indicator is the RSI indicator, traders can use this technical indicator to check divergence when trading oil.

The two types of divergence -bullish and bearish divergence are described below.

RSI Hidden Bullish and Bearish Divergence Oil Trading Setups

Hidden divergence is used as a possible sign for a oil trend continuation. Hidden divergence occurs when crude oil price retraces to retest a previous high or low.

Hidden RSI Bullish Oil Trading Divergence Setup

Forms when crude oil trading price is making a higher low (HL), but the oscillator is showing a lower low (LL).

Hidden bullish divergence in oil trading occurs when there is a retracement in an upwards oil trend.

Oil Hidden Bullish Divergence - best divergence indicator

This set up confirms that a retracement move is complete. This divergence indicates underlying strength of an upward oil trend.

Hidden RSI Bearish Crude Oil Trading Divergence Setup

Forms when crude oil trading price is making a lower high (LH), but the RSI is showing a higher high (HH).

Hidden bearish divergence in oil trading occurs when there is a retracement in a downward oil trend.

Oil Hidden Bearish Divergence - best divergence indicator

This crude oil trading divergence set-up confirms that a retracement move is complete. This crude oil trading divergence indicates underlying strength of a downward oil trend.