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1.5 - Mastering Divergence as a leading Indicator

RSI

RSI is a price momentum indicator with reading of overbought and oversold

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  • Areas below 30 suggest oversold and areas above 70 suggest overbought

Divergence

  • Divergence is when the price and indicator show different structures.
  • Bullish divergence increases the probability that a reversal will happen with more force and shouldn't just go sideways

 

Bullish divergence Bearish divergence


 

 

 

 

 

 

 

 

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