You are looking at the daily USD/JPY Forex chart. The image shows you a trade entry and exit based solely on signals coming from the Relative Strength Index indicator.
The chart starts with a price decrease which is also confirmed by the bearish direction of the RSI line. Suddenly, the RSI line enters the 30-0 area, creating an oversold signal. Shortly afterwards, the RSI line starts increasing,
while the price action continues its downward movement. This creates a bullish divergence between the price action and the Relative Strength Index.
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