Learn To Spot Divergences using RSI

When there is a new high or a new low in the market, what happens in the momentum of the market movement?  To determine the momentum, RSI Indicator (Relative Strength Index Indicator) can be used.  Adam from MarketClub teaches us in this video why RSI is important and how to spot divergences in the market.





For example, currently in GOLD market as the prices move higher, the RSI indicator actually moves lower.  This is not a good sign for the gold market according to the video because the momentum of the gold price is decreasing as it make new highs.  For Longs, we should be expecting the opposite: as prices move higher, the RSI indicator must move higher, or as prices move lower, the RSI indicator must move higher.

See video here.

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