A RSI Divergence STRATEGY (That Actually Works...)

"we have RSI divergence here on our RSI higher lows lower lows on price and at this point we've pushed up we pushed back down creating our V formation we've created a double bottom and the double bottom candle itself is a green hammer candle this is a great signal for me personally would be a great signal"

"we're gonna look for our side of urgent's after being oversold obviously when you're looking for the divergence we have to see that we're looking for RSI divergence that ends up having a double bottom with a green candle kicker after the double bottom"

"I need the market to be at previous resistance I need the market to show me our side of her just to give you a very simple example of this I'm gonna go to the dollar yen chart"

"I got more than five points with it with we have wicks coming off the 50 that's one we had overbought our side we had RSI divergence and the breakout pattern for me counted is two so we had that breakout pattern the big push down you could have called one but that would be a discretionary style trading with divergence"

"I'm looking for RSI divergence lower highs on the RSI higher highs on price I'm looking for a big move down followed by a potential breakout trade"

"my entry criteria has not been met my entry criteria is something I'm gonna discuss with you whenever we actually entered the trade so let's keep going let's keep moving price so and remember this is the discretionary way of trading as the market pushes up we get a new higher high yet again"

"this is what we call divergence is the indicator moving contrary or opposite to the way price itself is the candlesticks price action itself is making new higher highs here but our indicator is making lower highs with that being the case we have divergence"

"in order to classify this as a new high we need to wait until it turns into a swing high and have rules for that but let me tell you the reason first what if all we saw was green candles and green candles kept pushing this market up and it ended up not being RSI divergence"

"in order to look for this second high right now where price is I wouldn't even be looking at my RSI indicator not at all I want to see this high as a swing high and in order to do that for my rolls I need this swing high to be followed by two red candles"

"we have divergence so now you know what divergence is let's move on to the second part which is how can we spot divergence on a currency pair"

"divergence is an indication so with that being the case with it being a reversal indication I need to make sure that the market is trending up or down before I use it reversal does not work well and consolidation you want to make sure the market can actually reverse so for that reason make sure it's a trending market"

"the way I do that is by making sure the RSI is either overbought or oversold before I look for divergence"

"rule number one in order to spot divergence we need the market to be coming out of an overbought situation or an oversold situation"

"in order to look for this second high right now where price is I wouldn't even be looking at my RSI indicator not at all I want to see this high as a swing high and in order to do that for my rolls I need this swing high to be followed by two red candles"

"so at this point I can see that we have divergence and now that you know how to spot divergence in a market what I'm going to do is teach you how we actually use this information to get into better trading opportunities"

"rule number one I want to make sure the RSI is overbought before I start looking for divergence to the selling direction oversold if we're going the opposite direction pretty obvious but after rule number one's in place I don't want to just trade based on one candlestick making a higher high I want to make sure that's a swing high in order to do that is me looking for or the way I identify that is with this two candle pullback"

"this is what we call divergence is the indicator moving contrary or opposite to the way price itself is the candlesticks price action itself is making new higher highs here but our indicator is making lower highs with that being the case we have divergence"

"the use of divergence says that it warns that the current price and trend may be weakening and in some cases may lead to price changing direction"

"we have a high here we then have a new higher high on the oscillator on this case we're using the RSI indicator this is the indicator we'll use for the entirety of this video and it's my favorite indicator to use for divergence on the RSI indicator you can see that we have a lower high"