Natz 🔵
@natz
What is Bullish Divergence? A price chart showcasing bullish divergence is characterized by the formation of progressively lower lows by the price candles when the signal line of the oscillator forms progressively higher lows. It does not matter whether it is a bullish divergence RSI signal or a bullish divergence MACD signal: the principle of spotting and trading the divergence is the same. The sole difference is that a bullish divergence RSI signal uses the price troughs formed by the single signal line to detect the divergence. The bullish divergence MACD signal uses the point of the cross between the MACD lines in the indicator window as the reference signal from the oscillator.  Furthermore, the bullish divergence RSI signal uses a special setup on the RSI signal line known as the failure swing. The bullish divergence setups using the RSI and the MACD indicators are shown below.
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