Dear All , I am not A Professional in Share Markets But Sharing Knowledge always increases Knowledge of Everyone ... So , I am just Sharing About Possible Divergences of Share Price with RSI ...
Basically , There are two types of Divergences :-
(1) Positive/Bullish Divergence :-
It is known By Joining Bottoms in A Chart And Comparing it with RSI or Any Indicator ... There are Two Possibilities in this Divergence :-
: The Trend is Going Upwards & RSI is Slopping Downwards .
: The Trend is in Downward Direction & RSI Slops Upwards .
(2) Negative/Bearish Divergence :-
It can be derived by Connecting the Tops in A Chart And Comparing it with RSI or Any Indicator . Similarly , It is Identified if :-
: The Trend is Up And RSI Slops Down .
: The Trend is Down While RSI Shows Upwards Movement .
So That was From My Kitty ... You Can Apply Divergence Theory With Any Indicator ... It is Simply Awesome Tool for A Trader ... You All Should Keep it in Your Kitty ... Good Luck !!!