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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