RSI Energies Trading Classic Bullish Divergence and Energies Trade Classic Bearish Divergence Trade Setups

Energies Trading classic divergence pattern is used by traders as a possible sign for a trend reversal. Classic divergence setup is used when looking for an area where price could reverse and begin going in the opposite direction. For this reason energies trading classic divergence is used as a low risk entry method and also as an accurate way of exit out of a trade.

• Classic divergence is a low risk method to sell near the top or buy near the bottom of a market trend, this makes the risk on your trades are very small relative to the potential reward.

• Classic divergence is used to predict the optimum point at which to exit a trade

There are 2 different types of RSI Classic divergence trading setups:

1. Energies Trading Classic Bullish Divergence Setup
2. Trade Classic Bearish Divergence Setup

Classic Energies Trade Bullish Divergence

Classic energies bullish divergence occurs when price is making lower lows (LL), but the oscillator indicator is making higher lows (HL).

Classic Energies Trading Bullish Divergence - RSI Trading Strategies Methods

Classic bullish divergence warns of a possible change in the market trend from down to up. This is because even though the price went lower the volume of sellers who pushed the price lower was less as illustrated by the RSI indicator. This demonstrates underlying weakness of the down ward trend.

Classic Energies Trade bearish divergence

Classic energies bearish divergence occurs when price is making a higher high (HH), but the oscillator indicator is lower high (LH).

Trade Classic Bearish Divergence Energies with RSI Technical Indicator Energies Trading Strategies Methods

Classic energies bearish divergence warns of a possible change in the trend from up to down. This is because even though the price went higher the volume of buyers who pushed the price higher was less as illustrated by the RSI indicator. This demonstrates underlying weakness of the upwards trend.