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TOPIC: RSI Divergence strategy

RSI Divergence strategy 19 Nov 2013 18:09 #1

diver993 OFFLINE Senior Poster everything is possible Posts: 699 Thank you received: 1138 Karma: 25	Try this link...
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RSI Divergence strategy 19 Nov 2013 11:12 #2

stillsoulful OFFLINE Fresh Boarder Posts: 1 Karma: 0	Hi, video seems to be missing...cheers
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RSI Divergence strategy 18 Nov 2012 22:05 #3

diver993 OFFLINE Senior Poster everything is possible Posts: 699 Thank you received: 1138 Karma: 25	TS, I was as amazed as you that it worked. I ran it online then just copied and pasted the link and up it popped
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RSI Divergence strategy 18 Nov 2012 19:16 #4

Tradesmarter OFFLINE Junior Boarder chartsview@yahoo.co.uk Posts: 157 Thank you received: 413 Karma: 25	good stuff..how do you post a video? I can only ever seem to post the link! cheers bud
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RSI Divergence strategy 18 Nov 2012 10:47 #5

diver993 OFFLINE Senior Poster everything is possible Posts: 699 Thank you received: 1138 Karma: 25	Maxx, you might find this vid of interest... the guy has a very strong accent but the info is very interesting.
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RSI Divergence strategy 18 Nov 2012 00:17 #6

madmaxx
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This is RSI divergence strategy occurring on every time frame and its very predictable, its occurring often on 1min chart, few times a week on 5min chart and similar 15 and 60min charts however 15 and 60min charts will get more in points movement and greater accuracy compared to 1 and 5min charts, common situation on 1min chart is triple divergences and i would say its safes to trade only them, this can be applied to all time frame too, but from my observations its less likely to happen but still something to bear in mind. To increase chances for success of this strategy you can wait for it to happen at known support or resistance level but its not always the case as it can happen at any level.

At this point i would like to put some general informations about RSI because i don't know if everyone aware of such:

Bearish divergence occurs in up trend when price makes a new high but the RSI makes a lower high, thus failing to confirm.
Bullish divergence occurs in down trend when price makes a new low but RSI makes a higher low.

Sometimes divergence will be clearer to see on the line chart so its worth to switch chart when you see one happening and not sure.

We trading this strategy when on the second or third low in price - bullish/bearish candlestick has occurred, ideally if there is bullish/bearish engulfing pattern, but white hammer after series of red candles, or red shooting star after series of white candles are good too, so basically we enter trade after reversal candlestick in colour opposite to current trend, and place our stop below/above low/high of this reversal candlestick, i found that you can calculate the target by taking the distance similar to the space between low's or highs in the price chart, but its not always the case, can use 2:1 ratio or take profit just on points/money reason, or simply pay yourself asap,