RSI Commodity Trading Classic Bullish Divergence and Commodity Trading Classic Bearish Divergence Commodity Trading Setups
Commodity Trading classic divergence is used as a possible sign for a commodity trend reversal. Classic commodity divergence setup is used when looking for an area where commodities price could reverse and start going in the opposite direction. For this reason commodity trading classic divergence is used as a low risk entry method and also as an accurate way of exit out of a commodity trade.
- Classic commodity divergence is a low risk method to sell near the top or buy near the bottom of a commodity market trend, this makes the risk on your commodities trades are very small relative to the potential reward.
- Classic commodity divergence is used to predict the optimum point at which to exit a commodity trade
There are two different types of RSI Classic commodity divergence trading setups:
- Commodity Trading Classic Bullish Divergence Setup
- Commodity Trading Classic Bearish Divergence Setup
Classic Commodity Trading Bullish Divergence
Classic commodity bullish divergence occurs when commodities price is making lower lows (LL), but the oscillator is making higher lows (HL).
Classic Commodity Trading Bullish Divergence - RSI Commodity Trading Strategies
Classic bullish commodity divergence warns of a possible change in the commodity market commodity trend from down to up. This is because even though the commodities price went lower the volume of sellers that pushed the commodities price lower was less as illustrated by the RSI commodity indicator. This indicates underlying weakness of the downward commodities trend.
Classic Commodity Trading bearish divergence
Classic commodity bearish divergence occurs when commodities price is making a higher high (HH), but the oscillator is lower high (LH).
Commodity Trading Classic Bearish Divergence Commodities with RSI Commodities Technical Indicator Commodity Trading Strategies
Classic commodity bearish divergence warns of a possible change in the commodity trend from up to down. This is because even though the commodities price went higher the volume of buyers that pushed the commodities price higher was less as illustrated by the RSI commodity indicator. This indicates underlying weakness of the upward commodities trend.
