Why RSI Divergence can help you filter trades!

FX:USDJPY   U.S. Dollar / Japanese Yen
I've found for me that on the daily time frame the RSI on a 7 period, close works best.
I've made it a part of my trading strategy to check for RSI Divergence either bullish or bearish before placing a trade.

What is RSI Divergence?
Now RSI divergence is when the RSI doesn't correlate with the price chart, meaning that price action and RSI are not in sync.

What is it used for?
I use RSI divergence to spot possible weakness or strength in the market.
I use it as an additional filter to determine reversals or pullbacks.

Remember to keep it simple and don't over complicate things.

Try out the RSI on a 7 period, close on the daily time frame.
Upper Band: 80
Lower Band: 20

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