MACD And RSI Divergence Trading Strategies
Channel: Asher Andres
Date: 08/07/2021

When it comes to trading, most traders are stuck trying to find market tops and bottoms. But, it is very hard to spot a market reversal in real time.


What if there was a way through which you can catch market reversals with a high probability. That would enable you to enter and exit the stock at the right time.


Well, there is a way. That is called as divergence trading.


In this video, I will be showing you the best way of catching market tops and bottoms using divergence.


But, before we start, be sure to subscribe to our channel so that you don’t miss on any of our upcoming videos. With that being said, lets get into today's video.


By definition, a divergence occurs when the price and a technical indicator convey different messages for the same price data. The technical indicator in this strategy will be an oscillator. Hence, it can be RSI, MACD, stochastics, etc. The point is that the technical indcator will not be aligned with the price.


Now, Divergences are of two types. Regular Divergence, and Hidden Divergence. Regular divergence is used to identify the tops and bottoms of the market. While, hidden divergence can be used to identify pullbacks.