Divergence Explained

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

RSI Stocks Technical Analysis & RSI Stock Signals

RSI Divergence Technical Indicator

RSI Bullish Stock Trading Divergence Setups

Classic RSI Bullish Stocks Trading Divergence Setup

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

Stocks Classic Bullish Divergence - RSI Divergence Explained

RSI classic bullish divergence warns of a possible change in the stocks trend from down to up. This is because even though the stocks price went lower the volume of sellers that pushed the stocks price lower was less as illustrated by the RSI technical indicator. This is an technical indicator of the underlying weakness of the downward trend.

Hidden RSI Bullish Stock Trading Divergence Setup

Forms when 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 upward stock trend.

Stocks Hidden Bullish Divergence - RSI Divergence Explained

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

RSI Bearish Stock Trading Divergence

Hidden RSI Bearish Stocks Trading Divergence Setup

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

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

Stocks Hidden Bearish Divergence - RSI Divergence Explained

This setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards stock trend.

RSI Classic bearish Stock Trading Divergence Setup

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

Stocks Classic Bearish Divergence - RSI Divergence Explained

RSI Classic bearish divergence warns of a possible change in the stocks trend from up to down. This is because even though the stocks price went higher the volume of buyers that pushed the stocks 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 upward trend.