Hello community 
I very rarely use indicators and when I do I only use them to spot a divergence. I use RSI or MACD for this purpose but I have a question about the RSI divergence.
Do the highs/lows which form the divergence on RSI have to be in the oversold/overbought area or can they also be in between?
Thanks for your help
They can be anywhere on the RSI chart (I don’t personally use RSI divergence but I haven’t seen any studies to prove it makes any difference).
Ok thanks for your reply, appreciate it
Never really used the RSI - technically you are meant to wait for it to go into oversold or overbought but a lot of traders don’t, and most the time it doesn’t even get there and you miss out.
The last time I back tested the RSI it missed so many opportunities.
This might help you.
Like you, I prefer the MACD tho.
BP has a very good explanation of both plan and hidden divergence in there Pipoligy course, included at the end is a a quiz.
This has largely been covered by others, but as I use RSI I thought I’d chip in. You can use it anywhere within the field, but in my experience it is more powerful the further to the extremes it is. I use RSI purely as a backup reason to take a trade - if it isn’t overbought or oversold then I tend to discount it, in terms of letting it lend weight to my case for taking a trade. It is tempting to bend it to fit your idea (as it is with charts, trendlines, most things…) but my advice would be, FWIW: don’t.
ST.
I also only use it only for additional confirmation and would take the trade even without divergence if my other factors of confluence are in place but it is nice to have as further confirmation. Thanks your feedback