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RSI and the Double Dipping Pattern

RSI and the Double Dipping Pattern

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This video focuses solely on a frequent pattern within the RSI, giving you a clear indication of when a potential fade or reversal is about to happen.

Chris Capre

Verified Profitable Trader

Hi, I'm Chris Capre, Founder of 2ndSkiesForex. I've turned $3,000 into $83,000 in my first 6 months of trading. I'm a verified profitable trader and trading mentor. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action and the Ichimoku cloud. As a trading mentor, I have one goal: to change the way you think, trade and perform using 18yrs of trading experience and cutting edge neuroscience to wire your brain for successful trading. Want to improve your trading edge and mindset? Check out my trading courses here.

tikky_tikky

Hi Chris!

This is a great video on RSI an divergence. I just have a few questions and I hope you wouldn’t mind.

1. Is RSI the best oscillator to detect divergence?
2. In cases where the price creates a lower low and there was a divergence in the RSI but the second dip barely touched the oversold level, will that still be considered a valid setup as per your rules?
3. Can you share your thoughts on hidden divergence and RSI as well?

Thanks in advance.

Nel
- Chris Capre
  
  Hello Nel,
  
  Good questions;
  1) there is no best oscillator as its a question of what works best for you. For divergence, my three favorite are RSI, CCI and Momentum. Its a matter of personal preference from there and they all have their uniqueness.
  
  2) Depends upon how the previous low and behavior of the RSI was – many factors here to isolate
  
  3) What are you referring to when you say ‘hidden divergence’?
  
  Kind Regards
  Chris
tikky_tikky

Hi Chris!

Thanks for the quick reply. Some follow-up questions:

1. What settings would you recommend for RSI, CCI and Momentum? Are these settings the same for all timeframes?

2. At the first low, RSI went under the oversold territory and on the lower low, RSI barely touched it.

3. I’ve done some readings and some websites categorize hidden divergence as: price: lower high, oscillator: higher high = continuation of downtrend; price: higher low, oscillator: lower low = continuation of uptrend

Best Regards,

Nel
- Chris Capre
  
  Hello Nel,
  
  I go over the settings in the videos so those will work well.
  
  In regards to the other sites description of hidden divergence, I think its too simple since there are moving parts. It makes no account to the degree with which they diverge, only general descriptions so I’d consider this insufficient.
  
  Kind Regards
  Chris

RSI and the Double Dipping Pattern

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