Trade RSI Divergence Automatically Via Cleo.Finance!
Divergence is the term used to describe when the direction of an indicator and that of an asset are in opposite directions. The divergence between momentum and price indicators like the RSI/MACD are useful in identifying possible fluctuations in an asset's price. This is the reason it is the foundation of various trading strategies. We are delighted to inform you that you now have the ability to use divergence to establish closing and open conditions for your trading strategy using cleo.finance. See the best forex tester for site recommendations including automated forex trading, forex backtesting software, automated cryptocurrency trading, forex backtesting, software for automated trading, trading platform cryptocurrency, backtesting strategies, crypto backtesting, best forex trading platform, crypto trading bot and more.

There Are 4 Main Types:
Bullish Divergence
Price is showing lower lows as the technical indicator displays higher lows. This is a sign of a weakening of a downward trend, and could result in a reverse on the upside.

Hidden Bullish Divergence
The oscillator has lower lows, while the price makes higher lows. Hidden bullish divergence is an indication that the trend continues. This can be seen at the tail of a price throwback or retracement.



Hidden Bullish Divergence Explanation
Quick Notes: if you are watching troughs in an uptrend drawback, price goes up first

Bearish Divergence
As price sets higher levels, the indicator for technical analysis displays lower highs. This indicates that momentum towards the upside is waning, and that a reversal to the downside may be expected.

Bearish Divergence Explanation
Quick Notes: if you are watching the peaking in an uptrend, the indicator first moves downwards

Hidden Bearish Divergence
The oscillator is making higher highs, as the price makes lower highs. A hidden bearish divergence can suggest that the trend will continue to decline and is usually found near the bottom of a price pullback (retracement up).

Hidden Bearish Divergence Explanation
Quick Notes

Regular divergences provide a reversal signal
Divergences are a powerful indicator that the possibility of a trend reverse is imminent. They indicate that the trend is still strong but its momentum has diminished, providing an early warning of a possible change in direction. They can be very powerful entry triggers. Check out the top rated trading divergences for more examples including software for automated trading, trading platform crypto, backtesting platform, divergence trading, trading divergences, bot for crypto trading, crypto trading backtesting, automated trading, RSI divergence, backtesting platform and more.



Hidden Divergences Signal Trend Continuation
Hidden divergences on the contrary, are indicators of continuation, which can be found in the middle or at the end of a trend. They signify that the current trend is likely to peRSIst after a pullback and they can also be effective entry triggers when confluence is present. Trading professionals often employ hidden divergences to join a current trend after a pullback.

Validity Of The Divergence
The usual use for divergence is to use an indicator of momentum like RSI or Awesome oscillator or MACD. These indicators are focused on the present momentum and therefore can't be used to forecast the divergence that occurred over 100 candles in the past. Changes to the indicator's date could alter the look-back period required to establish a valid divergence. To determine the validity or non-validity of a divergence, you must use discretion. Certain divergences aren't valid.
Available Divergences in cleo.finance:
Bullish Divergence
Bearish Divergence
Hidden Bullish Divergence:- See the recommended crypto backtesting for blog info including crypto trading, backtesting trading strategies, stop loss, forex backtesting, crypto trading backtesting, RSI divergence, trading platforms, trading platforms, divergence trading, forex backtestingand you can compare those divergences between two points:

Price With An Oscillator Indicator
An oscillator that has a different indicator Price of any assets along with the cost of any other asset
How can you use divergences in cleo.financebuilder
Open conditions are created by Hidden Bullish Divergence in cleo.finance

Customizable Parameters
All divergences can be customized further by traders with the help of four parameters that can be edited.

Lookback Range (Period)
This parameter determines how far back the strategy should search for divergence. The default value is 60. This signifies "Look for the divergence anyplace within the last 60 bars."

Min. Distance Between Peaks/Troughs (Pivot Lookback Left)
This parameter decides how many candles are required to ensure that the pivot points have been found.

Confirmation bars (Pivot Lookback Right)
This parameter specifies how many bars need to be added on the right side in order to verify that the pivot has been located. Take a look at best crypto trading bot for website advice including trading with divergence, trading platform crypto, backtesting tool, best crypto trading platform, backtesting trading strategies, bot for crypto trading, forex backtest software, best crypto trading platform, automated trading software, trading with divergence and more.



Timeframe
In this section, you can define the period of time in which the divergence will take place. This timeframe can be different from the execution timeframe of the strategy.Customizable parameter settings of divergences on cleo.finance
Parameters for Divergences settings on cleo.finance
The pivot point settings determine the top and bottom of each divergence. If you don't change the default settings to a bullish divergence
Lookback Range (bars),: 60
Min. Distance between troughs is (left) = 1.
Confirmation bars = 3
This means that the divergence troughs should be within 5 bars of each other (less than one bar on the left, or three bars to the left). This is applicable to both troughs located within the lookback range of 60 candles. Three bars after the nearest pivot point is found, the divergence will be confirmed.

Available Divergencies In Cleo.Finance
The most popular uses are with RSI divergence as well as MACD divergence. However, it is possible to use any other oscillator that can be tested and traded on the trading automation platform cleo.finance. Check out the top rated backtesting tool for website recommendations including bot for crypto trading, trading platform crypto, best crypto trading platform, trading platforms, automated trading software, forex backtester, trading with divergence, trading platforms, trading platforms, trading divergences and more.

In Summary
Divergences are a valuable tool that traders can add to their arsenal. However, they should only be employed with caution and in a strategic manner. Keep these tips in mind and traders can be prepared to make use of divergences to make better decisions in trading. Divergences must be approached with an enlightened and strategic approach. These can be combined with other types of technical or fundamental analysis like Support and Resistance lines. Fib retracements and Smart Money Concepts will boost your conviction that the divergence is valid. Take a look at our Risk Management Guides on Stop loss placement and position size. You can create optimal divergence trading strategies immediately with over 55 indicators that are technical and price action. We are always improving the cleo.finance portal. We're pleased to provide information points or indicators on the request of.