The RSI relative strength index is used to determines divergences and reversal for the forex market. if you have traded Forex for very long you will have learn about divergences. Divergences are important because they tell the trader about price reversal. So, what is RSI indicator in Forex trading ? there are secrets revealed behind the RSI indicator. RSI relative strength index is commonly used in determining divergence patterns. A divergence reversal pattern generated on the trading chart when the market price action moves in one direction and then turn back in other direction.
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RSI reversals , RSI divergences
Many Forex traders have knew about RSI , the Relative strength index in particular from traders who evaluate in the Foreign exchange market. There are two main methods of determining buy / sell entry signals using RSI Forex indicator :
1. RSI divergence signals , reversal signals
2. RSI crossover levels
These RSI trading signals will lift your trading profits, You have to find which is better divergence reversal signals or RSI crossover levels. These signal is created by RSI forex indicator . The Crossover RSI level signals is not the same as a divergence signals. If you like using Forex technical indicator divergences as part of your day trading system , you should try RSI indicator. there are two types of divergence, the bullish divergence and the bearish divergence.
RSI is known as RSI divergence , In RSI indicator divergence , the possibility of a reversal taking place is likely if the trend turns other direction.
