Divergence is one of the reversal pattan of indicator.
This is It is one of the retrograde phenomenon of the oscillator type indicators.
Here is Divergence with RSI▼
EURJPY H1 Chart
After Divergence, Trend was going down. like that, and this time was too much of price down.
Divergence is one of the most famous reversal patterns, and it is a pattern that is easy to pay attention to traders.
So,we must pay attention when you see divergence on the chart.
How to find divergence with RSI
How to analyzing Divergence with RSI?
It is very simple way to find divergence with RSI. we can find it on the chart.
0～30・・・Down trend
0～70・・・Up trend
When the direction of candlestick reverses the direction of RSI,
it becomes divergence.
When divergence is confirmed in the chart,Thereafter, the trend reverses with high probability.
In my experience..maybe the probability is 95%.
Divergence tends to be more reliable as long as the time frame of a long span
To see if it is divergence or not, it is appropriate to use a time frame longer than 15 minutes
How to Tp from Divergence
When divergence occurs, the trend almost certainly goes backward immediately afterwards.
Therefore, you can think that it is a great opportunity for profit taking.
First, after confirming the divergence, pay attention to the latest high price. The rest is the support line.
If the candlestick falls below the support line, you can judge it to be a breakdown.
At this time, the market has come at a great opportunity to sell.
Wherever the candlestick will go backward after divergence depends on the movement of the market,
We traders should always remember the reversal pattern, including Divergence
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