📖Advanced RSI Divergences

Anticipate reversals and continuations, in real-time, using RSI divergences

Overview

Divergences occur when a technical indicator, like an oscillator, moves in the opposite direction of the price.
They often serve as an early warning of a trend reversal [via regular divergence signals] or trend continuation [via hidden divergence signals].
Regular divergences provide an early warning signal of potential trend reversals [i.e., trend weakening].
Hidden divergences provide an early warning signal of potential trend continuation [i.e., trend strength].

Regular and Hidden divergences flag in real-time when Potential [default] is selected as the Divergences Confirmation State.
This feature is a leading indicator that provides the trader with an early warning of a potential trend change [regular divergences] or trend continuation [hidden divergences].
When Confirmed is selected as the Divergence Confirmation State, regular and hidden divergences flag on a delay using a traditional 5-candle lookback period.

RSI regular divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an 'R' below and above the RSI line, respectively.
RSI hidden divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an 'H' below and above the RSI line, respectively.

Last updated 3 years ago