Class 10 RSI Regular Divergence

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See example below

three confirmations
never try this simple approach.

When price is overbought then find divergence

RSI Divergence

  1. Regular Divergence
    • to catch pull back
    • Risky and for scalping
  2. Hidden Divergence
    • to ride the trend
    • best for riding the trend. high probability trade

Regular Divergence

Look in over bought/over sold

over bought then find sell

over sold then find buy

check divergence and trade on retest of strong bearish momentum candle

target 1:1

if against the trend then exit early else hold

Strategy.

After finding divergence wait for 5EMA brake with momentum candle then target 1:1

successful trade
First breakout is not valid and its also not divergence.

Not recommended for trade as this divergence is not strong
successful trade but its against the trend. exit on 1:1
this is success trade on 1min time frame. 1:1.

EMA 5 test is confirmation. another confirmation is if bearish candle gets rsi below 70

find divergence on consecutive swing lows

No swing no trade. Price didnt break high to make a new swing. Its not proper retracement
Although this trade works but it didnt follow our rules and didnt break high. as a result it hit sl
In this case first divergence didnt give any confirmation

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