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