Relative Strength Index
The Relative Strength Index (RSI) is a momentum indicator that measures how fast and how much the currency pair’s price changes in a specific time period. It provides traders with overbought and oversold market conditions by providing values ranging from 0 to 100.
A bullish divergence can be identified with RSI when the currency pair price makes higher lows, and RSI makes lower lows.
A bearish divergence can be identified with RSI when the currency pair makes higher highs and RSI makes lower highs.
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