Thursday, November 24, 2011

Spyfrat's RSI-Price Divergence

RSI-Price divergence happens when the direction of price is different to RSI.



A stock is a BUY when the price made a lower low while the RSI had a higher low. price < RSI



(IP Chart isn't really signaled by the divergence; RSI just bounced on its support)




A stock is a sell when price made a higher high while RSI had a lower high. price > RSI



This technique can signify the completion of an elliot pattern.

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