Get to know about bullish diveregence by using the RSI (Relative Strength Index) indicator

When we do trading cryptocurrency, forex or stocks, we always use various indicators to predict future price movements, in order to make measurable decisions in determining whether to buy or when is the right time to sell. Personally, in trading such as in forex and cryptocurrency, I prefer to use a technical approach to trading in the short term because I think price movements for the short term are more likely to be influenced by the movement of buying and selling power that occurs in a market. And when trading in the short term I will use indicators to read price movements. And the indicator that I often use is the RSI indicator combined with support and resistance lines.

What is RSI ? I think almost people who know the world of trading will know exactly what RSI is, but I will share it a little here, maybe some friends are still not too familiar with this indicator. RSI (Relative Strength Index) is a technical indicator that measures the amount of price change in a certain period to analyze whether conditions in the market have reached an oversold point or an overbought point. From the description of the oversold point and the overbought point, the RSU is used as a marker of emerging trading opportunities. image source : https://www.foreximf.com/course/kelas-dasar/relative-strength-index-rsi

The value of the RSI indicator will always fluctuate between 0- 100 and to read this indicator is when the RSI value reaches 70 or more, it means that an asset has been overbought, so it could be that the price will reverse down or be corrected (time to sell). Meanwhile, when the RSI value drops to 30 or lower, it means that an asset has been oversold, so that later the price will reverse up and it's time to buy.

What is Bullish diveregence ? In simple terms, bullish diveregence is a condition that shows price conditions that form new low levels while the indicator confirms the opposite. So there is a mismatch between the indicator and the price conditions on the candle stick. image source : https://www.foreximf.com/course/kelas-dasar/relative-strength-index-rsi/divergence-dan-rsi

As we can see that in the above chart image display, the price is forming a new low level and showing a downtrend. but at the same time, the RSI indicator forms a new support point which is higher than the previous support or the RSI indicator shows an uptrend...

ok guys, that's a little bit about bullish diveregence using RSI, I hope to have another chance to write about profit-making strategies when finding bullish diveregence when treding. and about RSI completely as well..

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