Advanced RSI: RSI Potential Divergences

Advanced RSI Overview[\b]

• The conventional RSI momentum indicator measures the magnitude of price changes over a user-specified period to determine oversold and overbought conditions in the price of an asset.
  
• MetaWorld Advanced RSI adds several sophisticated features to enhance the analysis of RSI to detect early signs of trend reversals and continuations.
  
• Advanced capabilities include customizable fast and slow RSI moving averages, RSI Bollinger Bands, advanced oversold and overbought signals, and potential/confirmed regular and hidden divergences.
  
• These features provide traders with opportunities to identify confluence using other MetaWorld Crypto indicator suite signals and increase the probability of entering winning trades.
  

RSI Potential Divergences

• Divergences occur when a technical indicator, like an oscillator, moves in the opposite direction of the price.
  
• Regular and Hidden divergences flag in real-time when 'Potential' (default) is selected as the Divergences Confirmation State.
  
• This feature is a leading indicator that provides the trader with an early warning of a potential trend change (regular divergences) or trend continuation (hidden divergences).
  
• RSI regular divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘R’ below and above the RSI line, respectively.
  
• RSI hidden divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an ‘H’ below and above the RSI line, respectively.
  
• Always practice risk management: Use proper position sizing and a stop-loss on every trade.
  
  * This tutorial is intended for educational purposes only.