How to trade with Divergence? A condition where the price candles’ tops or bottoms point in a different direction from the corresponding tops or bottoms of the oscillator's signal line is called a divergence. Such divergence can be bullish or bearish.
In simple words, the price movement is opposite to the stochRSI,
Price lower lows, stochRSI higher lows = bullish divergence>go buy
Price higher highs, stochRSI lower highs = bearish divergence>go sell
In simple words, the price movement is opposite to the stochRSI,
Price lower lows, stochRSI higher lows = bullish divergence>go buy
Price higher highs, stochRSI lower highs = bearish divergence>go sell
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.