● RSI and divergence

1.Divergence is very important for predicting trend reversals in advance.

2.As explained earlier, it is not possible to sell or buy under conditions such as overbought or oversold, so you need to check if momentum is slowing down, and the most representative way is to check for divergence.

3.However, it should be noted that even if a divergence occurs, it does not necessarily mean that the trend will change.

4.For the definition of divergence, please refer to the Divergence section.

● BTC dily price viewd from RSI divergance

1.RSI divergence is highly reliable.

2.Personally, Iconsider the divergence between the RSI and MACD oscillators to be the most important, and the divergence of RSI appears less frequently than that of the MACD oscillator.

3.However, RSI has higher reliability, and high reliability means that there is a high conversion rate to the upside after an upward divergence and to a downward conversion rate a downward divergence.

4.The figure shows the dily Dai of BTC and the daily divergence of BTC in 2018.

5.By definition, tails must be included, but even if viewed based on the closing price, the meaning of the diversification is not significantly undermined, so I personally refer to both the closing price standard and the tail standard.

6.The picture is a divergence based on the mid price excluding the tail.

7.If you want to view it on a tail basis, I think it is more true to its original meaning to set the RSI creation standard on a tail basis rather than on a closing price basis.

8.In the picture, you can see that the trend changes after the divergence.