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What is RSI divergence cheat sheet?

RSI Divergence Cheat Sheet PDF [Download] What is the RSI Indicator and Why Is It So Popular? Developed in 1978 by J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator indicator that measures the speed and price changes movements. Traders use it to determine whether the asset is overbought or oversold.

How to spot RSI divergence?

Practically, because the RSI is a sub-chart placed below the main chart, it is pretty easy to spot RSI divergences. When you trade divergence, you try to find these situations when the price of the asset moves in one direction and the RSI indicator in the other direction.

What is the difference between hidden divergence and RSI divergency?

On the other hand, hidden divergence occurs when the price makes a lower low, but the RSI indicator makes a higher low, signaling a potential trend continuation. RSI Divergence occurs when the price movement and the RSI indicator move in opposite directions, signaling a potential reversal in the current trend.

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