Master the Art of Trading Bullish Divergence! 📈
Identify potential trend reversals and capitalize on profitable opportunities.
Key Steps:
Spot the Divergence: Look for a divergence between price action and RSI.
Change Upper Band: Adjust the upper band of the RSI indicator to 50 for better sensitivity.
Draw a Parallel Channel: Identify the trend and draw a parallel channel to spot potential breakouts.
Enter the Trade: Enter a long position when the RSI crosses above the 50 level and the price breaks above the parallel channel.
Set Your Take Profit: Use Fibonacci retracement levels to determine potential profit targets.
Remember:
Risk Management: Always use stop-loss orders to protect your capital.
Confirmation: Combine bullish divergence with other technical analysis tools for increased accuracy.
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