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What is Divergence And How Does it Work ... For Learners ...

NSE:YESBANK   YES BANK
Dear All , I am not A Professional in Share Markets But Sharing Knowledge always increases Knowledge of Everyone ... So , I am just Sharing About Possible Divergences of Share Price with RSI ...
Basically , There are two types of Divergences :-

(1) Positive/Bullish Divergence :-
It is known By Joining Bottoms in A Chart And Comparing it with RSI or Any Indicator ... There are Two Possibilities in this Divergence :-
: The Trend is Going Upwards & RSI is Slopping Downwards .
: The Trend is in Downward Direction & RSI Slops Upwards .

(2) Negative/Bearish Divergence :-
It can be derived by Connecting the Tops in A Chart And Comparing it with RSI or Any Indicator . Similarly , It is Identified if :-
: The Trend is Up And RSI Slops Down .
: The Trend is Down While RSI Shows Upwards Movement .

So That was From My Kitty ... You Can Apply Divergence Theory With Any Indicator ... It is Simply Awesome Tool for A Trader ... You All Should Keep it in Your Kitty ... Good Luck !!!
Comment: Divergence Worked Here ... Gained 4% :)
Thanks. Simple and easy to understand.
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Liked it.
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Explanation is really good and simple. more posts like this will be appreciated
+1 Reply
kbmj mishraabhishek869
@mishraabhishek869, Thanks ... Will Give More Educational Posts Like it ... :)
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Thanks
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kbmj manishsaki
@manishsaki, Welcome ... :)
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OSSOM
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kbmj YashKulkarni
@YashKulkarni, Thanks for Appreciating ... :)
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@kbmj, WELCOME
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excellent thanks
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