Using RSI Divergence to Trade (BTC) - Bullish Divergence
In the previous issue, we talked about the strategy of using the bearish divergence of RSI to place orders. Here we will talk about the strategy of using the bullish divergence of RSI to place orders.
one example:
1. A hammer line appears, which is a good bull signal;
2. The price hit a new low, but the RSI hit a higher high. A strong divergence means that the underlying trend is in the opposite direction;
3. The price breaks through with volume, which is a good bull signal, so we enter the market when MA14 is pulled back;
4. Pay attention to the confirmation of volume and price during the rising process;
5. Bearish engulfing appears, which is a short signal. When it falls below the trend line, we take profits.