2nd Skies Trading

4 thoughts on “RSI and the Double Dipping Pattern”

  1. 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,

    1. 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

  2. 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.

    1. 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

Comments are closed.

Scroll to Top

Start the New Year right!

Use coupon code


Start 2022 right by taking your trading to the next level. Get a 22% discount on any course.

Valid until Jan 31, 11:59pm PST. Only applies to 1st year purchase, for courses with recurring subscriptions