Divergence

When an oscillator like RSI has high and low peaks move up/down, and the price peaks move in the opposite direction.

There's a video about it in the academy classroom.

There are different types:

  • Regular
  • Hidden

Bearish divergence up to the head, helps a trade.

The longer period of time, and the more far apart the price action ends == more powerful.

Add taking divergence to your checklist.

If there's significant divergence, you can increase the risk on the trade.