RSI Divergence Metal Trading Indicator Technical Analysis

Divergence trading has 2 setups & these are bullish & bearish divergence set-ups. For each of these metals trading setups there is also classic divergence and hidden divergence, these metals setups are described below.

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

RSI Metal Trading Divergence Example

RSI Metal Indicator Divergence Example

RSI Divergence Technical Indicator

Classic RSI Bullish Metal Trading Divergence Setup

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

Metals Trading Classic Bullish Divergence - RSI Metals Divergence Examples

RSI classic bullish divergence setup warns of a possible change in the metals trend from down to up. This is because even though the metals price went lower the volume of sellers that pushed the metals price lower was less as illustrated by the RSI indicator. This is an technical indicator of the underlying weakness of the downwards trend.

Hidden RSI Bullish Metals Trading Divergence Setup

Forms when metals 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 upwards metal trend.

Metals Hidden Bullish Divergence - RSI Metals Divergence Examples

This divergence example setup confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an upward metal trend.

RSI Divergence Indicator

Hidden RSI Bearish Metal Trading Divergence Setup

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

Hidden bearish divergence setup occurs when there is a retracement in a downward metal trend.

Metals Hidden Bearish Divergence - RSI Metals Divergence Examples

This divergence example setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downward metal trend.

RSI Classic bearish Metals Trading Divergence Setup

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

Metals Classic Bearish Divergence - RSI Metals Divergence Examples

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