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 !!!
Sir plplz specify which time period is used formercedes divergence, hourly, daily, weekly, monthly, and for how long, one month, 6 months, or years ?. Thanks :-)