RSI Divergence – indicator of classical and hidden divergences
RSI Divergence Indicator is a modified version of the indicator RSI, allowing to work not only with overbought and oversold levels, but also to find the classic and hidden divergences. The indicator is universal and can be installed on any asset and any timeframes.
Characteristics of RSI Divergence Indicator
- Platform: Metatrader4
- Currency pairs: Any currency pairs (recommended Major)
- Trading Time: Around the clock
- Timeframe: M5 - W1
- Recommended broker: Alpari, Forex4you
Trading Rules with RSI Divergence Indicator
Divergence in the readings of technical indicators is considered a powerful tool for generating a signal to enter the market. That is why RSI Divergence Indicator is very popular with traders. In this case, we are dealing with a divergence in the direction of the trend lines on the price chart and on the oscillator chart.
Buy signal is formed when the trend line on the price chart is directed upwards. And, at the same time, the trend line of the oscillator, on the contrary, is directed downwards.
Sell signal (opposite conditions) is formed when the trend line on the price chart is directed downwards. And, at the same time, the trend line of the oscillator, on the contrary, is directed upwards.
Examples of signals RSI Divergence Indicator:
There are no regulated data for the installation of Stop Loss and Take Profit. Stop Loss can be set according to the standard scheme: a few pips above / below the local minimum / maximum of price (the nearest support / resistance level).
Take Profit - depending on the Time Frame and currency pair, but not less than 2 x Stop Loss.
Of course, RSI Divergence can act as an independent source of trading signals to open long and short positions, but still better to use it with additional filters or as part of a trading strategy.
In trade, be sure to consider important economic news. And do not trade in the period of 30 minutes before the release and 30 minutes after the release of important economic news. You can see it here - Economic Calendar.
Free Download RSI Divergence MT4
In the archive RSI_Divergence.rar:
- RSI Divergence.ex4
- RSI Divergence template.tpl
Free Download RSI Divergence