When the move of price is different from the oscilator(RSI), then there is divergence.
On the 4hours time frame, the price of AUDJPY has been spotted moving in a different direction with the RSI.
Divergence occurs when an indicator trends in one direction and price trends in another direction. Specifically, an indicator will make lower highs while price makes higher peaks, or the indicator will make higher valleys even as price tumbles to new lows.
Bullish divergence occurs when price makes a lower low but the indicator forms higher lows. The two data streams diverge in direction. Price will eventually, usually, follow the indicator higher.
When you spot divergence, recognize that the price trend may change. This doesn't mean an immediate buy, but consider taking a position soon, especially if you receive other confirming signals.
We still advise all traders to stick to the breakout price.
LONG:
Buy: 78.243
Sell:78.420 up to 78.964
Stop loss: 77.907
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
On the 4hours time frame, the price of AUDJPY has been spotted moving in a different direction with the RSI.
Divergence occurs when an indicator trends in one direction and price trends in another direction. Specifically, an indicator will make lower highs while price makes higher peaks, or the indicator will make higher valleys even as price tumbles to new lows.
Bullish divergence occurs when price makes a lower low but the indicator forms higher lows. The two data streams diverge in direction. Price will eventually, usually, follow the indicator higher.
When you spot divergence, recognize that the price trend may change. This doesn't mean an immediate buy, but consider taking a position soon, especially if you receive other confirming signals.
We still advise all traders to stick to the breakout price.
LONG:
Buy: 78.243
Sell:78.420 up to 78.964
Stop loss: 77.907
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.