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Mantubora
25 avr. 2021 13:38

RSI divergence in NIFTY. Short

Nifty 50 IndexNSE

Description

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100

An RSI divergence is saying that the indicator does not agree with the price action.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.

A bearish divergence occurs when the RSI creates an overbought reading followed by a lower high that matches corresponding higher highs on the price.

education purpose.
Commentaires
Upen1973
An opposite explanation is also possible from this RSI condition. It (price) may jump up in this type of RSI (or even other oscillators like Stochastic) going down where the price is making some sideways, though I also believe that market will go down this time.
subravi
this is hidden divergence which is bullish
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