RSI Classic Bullish Divergence and Silver Trade Classic Bearish Divergence Silver Trade Setups

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

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

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

There are two different types of RSI Classic divergence setups:

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

Classic Bullish Divergence

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

Classic Bullish Divergence - RSI Strategies Methods

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

Classic bearish divergence

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

Trade Classic Bearish Divergence Silver with RSI Indicator Silver Strategies Methods

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