Divergence Oil Indicators

The best divergence technical indicator is the RSI indicator, traders can use this technical indicator to check divergence when trading crude oil.

The two types of divergence -bullish & bearish divergence are described below.

RSI Hidden Bullish & Bearish Divergence Oil Trading Setups

Hidden divergence is used as a possible sign for a oil trend continuation. Hidden divergence occurs when crude oil price retraces to retest a previous high or low.

Hidden RSI Bullish Oil Trading Divergence Setup

Forms when crude oil price is forming a higher low (HL), but the oscillator is showing a lower low (LL).

Hidden bullish divergence in oil occurs when there is a retracement in an upward crude oil trend.

Oil Trading Hidden Bullish Divergence - best divergence indicator

This setup confirms that a retracement move is complete. This divergence indicates underlying strength of an upward crude oil trend.

Hidden RSI Bearish Oil Trading Divergence Setup

Forms when crude oil price is forming a lower high (LH), but the RSI is showing a higher high (HH).

Hidden bearish divergence in oil occurs when there is a retracement in a downward crude oil trend.

Oil Hidden Bearish Divergence - best divergence indicator

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