How to identify Hidden divergence with the help of RSI

2019년 6월 11일

This example is bets suited for RSI hidden divergence.
We all know double bottom or double top RSi divergence to identify trend reversals.
But with the help of Hidden divergence we can find out trend continuation.
Lets start !!
- On 18 April stock is traded 411 and RSI shows the 51.29 reading .
- But it break the support level and fall further.
- it again renounce back to 411 level but this time RSI shows 68 levels which close to overbought region .
- At present condition we have resistance level 412 also.
- So we can Short it with the stop 412 on closing basis .

Only Condition is stock has to be in same trend Down or Up

See the Past example

2019년 6월 12일

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One more example for better understanding.

2019년 6월 12일

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One more Example...

2019년 6월 12일

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2019년 6월 12일

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It works in either direction for Long also, See example

2019년 6월 18일

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Trade paid off.