Low Risk High Reward Setup with RSI BULLISH DIVERGENCE

The analysis is on how to create a low risk high reward trade with RSI being a key indicator,together with previous broken resistance line now acting as a support.

If the price slope of the stock is negative ( bearish ) and the RSI slope is positive ( bullish ) it is an indication ( RSI BULLISH DIVERGENCE ) of the reversal in the price of the stock.With the previous broken resistance line which will be the demand zone of the buyers a long setup can be created with the stoploss just below the confirmation bullish candle at the close of the day.

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