Trading - How to use RSI and other indicators

in trading •  7 years ago  (edited)

With the RSI you can detect some divergence. Divergence appears when a technical indicator (usually an oscillator) begins to establish a trend that disagrees with the actual price movement.

For example if the price is going down, but the RSI is going up for to long, more it's continue more the change we will have to have a reversal trend.

but remember that this is just one of the use of the RSI!

A RSI growing with the chart, with a momentum starting to pass up is a huge pump signal in general.

With these 3 simple indicatore, we can know the momentum (with the third indicator).

I use the SWING indicator tu always remember the elasticity of the momentum in a better way.

Any questions?

I'm just a beginner so don't hesitate to correct me or to teach me more tools!

Thank you for reading,

@jimy74

Source of inspiration : https://www.learningmarkets.com/how-to-trade-bullish-and-bearish-technical-divergences/

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