RSI divergence is an important technique that can be used to pick out a bottom or top in a trending market. The AUD/NZD charts (Figure 1) illustrate the power of this technique. RSI divergence is created when each successive low (or high) in price creates a higher low (or lower high) in the RSI. As a rule of thumb three successive lows in price with corresponding higher lows in RSI or vice versa is indicative of the fact that a bottom is near. Figure 1 shows four successive divergent points between the price and RSI before a break of the declining trend line and acceleration higher.

Figure 1: AUD/NZD (Daily)

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The training material should be reviewed in the following order:

1. Fundamental vs Technical Analysis: 

Video: http://mystockstream.com/medias/view/18507/technical-vs-fundamental-analysis

Presentation: http://mystockstream.com/pg/file/read/383/fundamental-vs-technical-analysis

2. Types of Charts: 

Video: http://mystockstream.com/medias/view/18516/types-of-charts

Presentation: http://mystockstream.com/pg/file/read/384/types-of-charts

3. Chart Patterns: 

Video: http://mystockstream.com/medias/view/18517/chart-patterns

Presentation: http://mystockstream.com/pg/file/read/393/chart-patterns

4. Technical Analysis: 

Video: (1) http://mystockstream.com/medias/view/18518/technical-analysis-i

           (2) http://mystockstream.com/medias/view/18522/technical-analysis-ii

Presentation: http://mystockstream.com/pg/file/read/392/technical-analysis

5. Candlestick Patterns: 

Video: http://mystockstream.com/medias/view/18523/candlestick-patterns

Presentation: http://mystockstream.com/pg/file/read/394/candlestick-patterns

6. Fibonacci Analysis: 

Video: http://mystockstream.com/medias/view/18524/fibonacci-analysis

Presentation: http://mystockstream.com/pg/file/read/395/fibonacci-analysis

7. Pivot Points: 

Video: http://mystockstream.com/medias/view/18525/pivot-points

Presentation: http://mystockstream.com/pg/file/read/4772/Pivot-Points

8. Multiple Time Frames: 

Video: http://mystockstream.com/medias/view/18526/multiple-time-frames

Presentation: http://mystockstream.com/pg/file/read/4771/Multiple-Time-Frames

9. Time of the Day: 

Video: http://mystockstream.com/medias/view/18527/time-of-day

Presentation: http://mystockstream.com/pg/file/read/4773/Time-of-the-Day

10. Trading the News:

Video: http://mystockstream.com/medias/view/18528/trading-the-news

Presentation:  http://mystockstream.com/pg/file/read/4774/Trading-the-News

11. Risk Management: 

Video: http://mystockstream.com/medias/view/18529/risk-management

Presentation: http://mystockstream.com/pg/file/read/741/risk-management

12. Elliott Wave Analysis: 

Video: http://mystockstream.com/medias/view/18530/elliott-wave-analysis

Presentation: http://mystockstream.com/pg/file/read/397/elliott-wave-analysis

13. Futures Trading: 

Presentation: http://mystockstream.com/pg/file/read/586/futures-trading

14. Options Trading: 

Presentation: http://mystockstream.com/pg/file/read/644/options-trading

15. Carry Trade:

Video: http://mystockstream.com/medias/view/18531/carry-trade

Presentation:  http://mystockstream.com/pg/file/read/396/carry-trade

The StockStream Education Model