RSI Divergence mq4

 

 

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| Relative Strength Index (RSI)

This oscillator shows the internal strength of a single instrument. It is a lagging indicator that places weight on the average up price change (U) compared to the average down price change (D). The formula is as follows 100 - (100 1 + (U D)).

The RSI oscillator can be used in a number of ways. Most popular are:

Tops and Bottoms If the RSI moves above 70 or below 30 this signifies the strength of the move is peaking and a reversal is likely to occur.

Divergence If price makes a higher high and the RSI fails to make a higher top then this indicates loss of momentum and a reversal is likely to occur and vice versa.

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rsi divergence mq4