How to trade RSI Divergence?
See Section VI in the book:
New Concepts In Technical Trading Systems - J. Welles Wilder Jnr. (1978)
I started a thread concerning divergence in march- during my scalping i recognized a Stochastik divergence ( look at the screenshot, it is marked: price makes new high but Stochastik doesn t share the game and makes a low)
The principle is the same for RSI as well, so later on the indicator is “stronger” and the price follows the indicator (not always but remarkable often).
Nevertheless my profits that day were not based on this divergence.
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Come on bro, do some work. Do the babypips course. You’ll learn it.