RSI Divergence CFDs Technical Indicator Technical Analysis

Divergence trading concept is a concept where a trader will for a difference between the cfds price movement with the movement of a technical indicator. For our example we shall use the RSI technical indicator to explain divergence trading.

RSI indicator is one of the commonly used divergence trading indicator. This cfd indicator is an oscillator similar to the RSI & it can be used to trade divergence setups just the same way as the RSI indicator.

RSI CFDs Technical Analysis & RSI CFDs Signals

RSI Divergence Technical Indicator

RSI Divergence Technical Indicator

Classic RSI Bullish CFDs Trading Divergence Setup

RSI classic bullish divergence occurs when cfds price is forming lower lows (LL), but the RSI technical technical indicator is making higher lows ( HL ).

CFD Classic Bullish Divergence - RSI CFD Divergence Definition

RSI classic bullish divergence warns of a possible change in the cfd trend from down to up. This is because even though the cfds price went lower the volume of sellers who pushed the cfds price lower was less as shown and illustrated by the RSI technical indicator. This is an technical indicator of the underlying weakness of the downward trend.

Hidden RSI Bullish CFD Trading Divergence Setup

Forms when cfds price is forming a higher low (HL), but the RSI technical technical indicator is showing a lower low ( LL ).

RSI hidden bullish divergence occurs when there is a retracement in an upward cfds trend.

CFD Hidden Bullish Divergence - RSI CFD Divergence Definition

This set-up confirms that a retracement move is complete. This RSI divergence set up indicates underlying strength of an upward cfds trend.

RSI Divergence Technical Indicator

Hidden RSI Bearish CFD Trading Divergence Setup

Forms when cfds price is forming a lower high (LH), but the oscillator technical indicator is showing a higher high ( HH ).

Hidden bearish divergence forms when there is a retracement in a downward cfds trend.

CFD Hidden Bearish Divergence - RSI CFD Divergence Definition

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards cfds trend.

RSI Classic bearish CFDs Trading Divergence Setup

RSI classic bearish divergence occurs when cfds price is forming a higher high (HH), but the RSI technical technical indicator is making lower high ( LH ).

CFD Classic Bearish Divergence - RSI CFD Divergence Definition

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