RSI Oil Classic Bullish Divergence & Oil Classic Bearish Divergence Oil Trading Setups

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

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

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

There are two types of RSI Classic oil divergence trading setups:

1. Oil Classic Bullish Divergence Setup
2. Oil Classic Bearish Divergence Setup

Classic Oil Trading Bullish Divergence

Classic oil bullish divergence occurs when crude oil price is forming lower lows ( LL ), but the oscillator technical indicator is forming higher lows ( HL ).

Classic Oil Trading Bullish Divergence - RSI Oil Trading Strategies

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

Classic Oil Trading bearish divergence

Classic oil bearish divergence occurs when crude oil price is showing a higher high ( HH ), but the oscillator technical indicator is showing a lower high ( LH ).

Oil Classic Bearish Divergence Oil with RSI Oil Trading Indicator Strategies

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