What is RSI Commodities Trading Divergence?
RSI Commodity Trading Divergence Commodities is one of the commodity strategy used by online commodities traders to analyze commodity chart commodities price movement. RSI Commodity Trading Divergence involves looking at a commodity chart and one more commodities technical indicator - RSI indicator. For our this commodity divergence tutorials we shall use the RSI indicator - RSI Commodity Trading Divergence.
To spot this RSI commodities divergence trading setup find two commodity chart points at which commodities price makes a new swing high or a new swing low but the RSI technical indicator doesn't do the same, thus indicating that there is a divergence between the commodities price & momentum.
RSI Commodity Trading Divergence Example:
In the commodities chart below we spot two commodity chart points, chart point A and chart point B (swing highs)
Then using RSI indicator we check highs made by RSI technical indicator, these are the highs which are direct below the Chart points marked A and B.
We then draw one line on the commodities chart & another line on the RSI indicator.
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How to trade RSI commodity trading divergence
In order to trade RSI commodities trading divergence set-up we look for the following setups:
HH - Higher High - two highs but the last one is higher
LH - Lower High - 2 highs but the last one is lower
HL - Higher Low - 2 lows but the last one is higher
LL - Lower Low - two lows but the last one is lower
First let us look at examples of these commodities divergence trading terms
What is RSI Commodity Divergence? - Commodity Trading RSI Indicator Divergence Meaning - Commodity Trading RSI Divergence Explained
RSI Commodity Trading Divergence Definition - RSI Divergence Commodities Explained - RSI Commodity Trading Divergence Strategy PDF - RSI Divergence Commodity Trading PDF
There are two different types of commodity RSI divergence setups:
- RSI Classic Divergence
- RSI Hidden Divergence
