Part 64 | RSI Divergence
Divergence means the price is making a new high, but the RSI is unable to break its previous high — meaning the upward momentum is weakening from within. This is one of the best early warning signals of a reversal and a favorite among pro traders.
How to identify it:
1. Price up, RSI down = Bearish divergence (a decline may follow)
2. Price down, RSI up = Bullish divergence (a reversal may follow)
3. Divergence on higher timeframes is more reliable
Remember: Divergence is a warning, not an entry signal — confirmation is essential.
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#TechnicalAnalysis #TradingView #Indicators $BTC
Divergence means the price is making a new high, but the RSI is unable to break its previous high — meaning the upward momentum is weakening from within. This is one of the best early warning signals of a reversal and a favorite among pro traders.
How to identify it:
1. Price up, RSI down = Bearish divergence (a decline may follow)
2. Price down, RSI up = Bullish divergence (a reversal may follow)
3. Divergence on higher timeframes is more reliable
Remember: Divergence is a warning, not an entry signal — confirmation is essential.
Follow 👇
#TechnicalAnalysis #TradingView #Indicators $BTC