jeudi 25 octobre 2012

RSI divergence confirmation for Butterfly patterns

Divergence is popular method to identify trend reversal places, so to sell near the top of a trend or buy near the bottom. Very useful method to confirm validity/proper location of a butterfly pattern.

Example (Forex USDCHF) of the harmonic butterfly pattern confirmed by the RSI divergence, but also by the 2 pivot levels (confluence of monthly and weekly pivot levels)


RSI divergence confirmation for butterfly pattern
RSI divergence confirmation method

To learn more about divergence concept and how it shell be used to confirm valid butterfly patterns check this dedicated thread -> Butterfly Pattern divergence methods

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