A bullish divergence happens when the Relative Strength Index (RSI) shows a low reading indicating oversold conditions, followed by a higher low in the RSI, while the price continues to make lower lows. This pattern may indicate that bullish momentum is building, and when the RSI breaks above the oversold level, it could be an opportunity to enter a new long position.
Above statement has been explained in the chart with invalid setup, when to enter and target to achieve.
Thank you for sharing your view on bullish divergence and explaining it with a chart. Your explanation of this trading strategy is clear and concise, making it easy for traders to understand how to identify potential opportunities in the market. Your emphasis on the importance of waiting for confirmation by the RSI breaking above the oversold level before entering a long position is a valuable reminder to avoid jumping into trades too quickly. Your insight on the potential target for a long position based on the chart is also helpful in setting realistic expectations for traders. Overall, your post is an excellent resource for traders looking to use bullish divergence as a part of their trading strategy.