Finding the right entry point in any investor's watchlist is arguably the most daunting task for investors. Many would say you can’t time the market; some would say it is easy with the right tools. In more cases than not, timing the market is near impossible. That said, investors have tools to help navigate the market and spot potential opportunities. One of these is the use of RSI (Relative Strength Index) and the insight provided by seeing a divergence in both price and RSI.
RSI Divergence is one of the unique ways that provides a signal to “look” at any trading instrument that has the potential to reverse its current course. An RSI divergence occurs when the price moves in the opposite direction of the RSI.
