Divergence Tutorial

RSI indicator is one of the commonly used divergence trading indicator. This technical indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

RSI Oil Trading Technical Analysis & RSI Trading Signals

RSI Divergence Indicator

RSI Bullish Crude Oil Trading Divergence Setups

Classic RSI Bullish Oil Trading Divergence Setup

RSI classic bullish divergence occurs when crude oil trading price is making lower lows (LL), but the RSI technical technical indicator is making higher lows ( HL ).

Oil Trading Classic Bullish Divergence - RSI Divergence Guide

RSI classic bullish divergence warns of a possible change in the oil trend from down to up. This is because even though the crude oil price went lower the volume of sellers who pushed the crude oil trading price lower was less as illustrated and displayed by the RSI indicator. This is an technical indicator of the underlying weakness of the downwards trend.

Hidden RSI Bullish Crude Oil Trading Divergence Setup

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

RSI hidden bullish divergence occurs when there is a retracement in an upwards oil trend.

Oil Hidden Bullish Divergence - RSI Divergence Tutorial

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

RSI Bearish Oil Trading Divergence

Hidden RSI Bearish Crude Oil Trading Divergence Setup

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

Hidden bearish divergence forms when there's a retracement in a downward oil trend.

Oil Hidden Bearish Divergence - RSI Divergence Guide

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

RSI Classic bearish Oil Trading Divergence Setup

RSI classic bearish divergence occurs when crude oil trading price is making a higher high (HH), but the RSI technical technical indicator is making lower high ( LH ).

Oil Trading Classic Bearish Divergence - RSI Divergence Tutorial

RSI Classic bearish divergence warns of a possible change in the oil trend from up to down. This is because even though the crude oil price went higher the volume of buyers that pushed the crude oil trading price higher was less as illustrated and shown by the RSI technical indicator. This is an technical indicator of the underlying weakness of the upwards trend.