Bullish Divergence on AUDUSD 4H
Divergence is used mostly in complementary roles to trade opportunities.
A bullish divergence occurs when prices fall to a new low while an oscillator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend (investopedia, 2021)
On the H4 using RSI, I see the bullish divergence opportunity coming in handy if we can see a retracement into the 61% fib coupled with bullish price action.
Trade safe.
NB: this is just the idea, not a trade signal
A bullish divergence occurs when prices fall to a new low while an oscillator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend (investopedia, 2021)
On the H4 using RSI, I see the bullish divergence opportunity coming in handy if we can see a retracement into the 61% fib coupled with bullish price action.
Trade safe.
NB: this is just the idea, not a trade signal
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