RSI Energies Trading Indicator Divergence Energies Trading Setups
Energies Trading Divergence is one of the trade setups used by Energies traders. It involves looking at a energies chart and one more energies technical indicator. For our example we shall use the RSI energies technical technical indicator.
To spot this energies divergence setup find two chart points at which energies price makes a new swing high or a new swing low but the RSI indicator does not, indicating a divergence between energies price & momentum.
RSI Energies Trading Divergence Example:
In the energies chart below we spot two chart points, point A and point B (swing highs)
Then using RSI technical indicator we check the highs made by the energies RSI technical indicator, these are highs that are directly below the energies Chart points A and B.
We then draw one line on the energies chart and another line on the RSI energies technical technical indicator.
RSI Divergence Energies Setup - Energies Trading Divergence Energies using RSI Energies Trading Technical Indicator
How to spot energies divergence
In order to spot this energies divergence setup we look for the following:
HH=Higher High- two highs but the last one is higher
LH= Lower High- two highs but the last one is lower
HL=Higher Low- two lows but the last one is higher
LL= Lower Low- two lows but the last one is lower
First let us look at the illustrations of these energies terms
Divergence Energies Terms Definition
Energies Trading Divergence Energies Terms Definition Examples
There are two different types of energies divergence setups:
- Classic Energies Trading Divergence
- Hidden Energy Trading Divergence
