🚨 DIVERGENCES: THE SECRET THAT PREDICTS THE MARKET
If you're using RSI and still don’t have a grip on divergences… you’re leaving money on the table.
📊 What are divergences?
They are signals that price and RSI are 'out of sync' — and this usually indicates a change or continuation of trend.
🔥 1. Bearish Divergence
📈 Price makes a higher high
📉 RSI makes a lower high
👉 Shows weakness of buyers
👉 Possible reversal to the downside
🔥 2. Bullish Divergence
📉 Price makes a lower low
📈 RSI makes a higher low
👉 Shows weakness of sellers
👉 Possible reversal to the upside
⚡ 3. Hidden Bearish Divergence (Continuation)
📉 Price makes a lower high
📈 RSI makes a higher high
👉 Market continues to fall
👉 Entry in favor of the trend
⚡ 4. Hidden Bullish Divergence (Continuation)
📈 Price makes a higher low
📉 RSI makes a lower low
👉 Market continues to rise
👉 Entry in favor of the trend
🚫 MISTAKE THAT MAKES YOU LOSE MONEY:
Using divergence in a sideways market.
💡 If the market is ranging:
➡️ RSI will give false signals
➡️ Divergences lose strength
👉 Best decision: DO NOT TRADE
🎯 GOLDEN RULE:
Divergence works best with: ✔ Clear trend
✔ Entry zones like Support/Resistance; FVG/OB/BB.
✔ Confirmation (candlesticks, structure, break)
💡Golden Tip:
'Divergence is not a signal to enter… it’s a signal to pay attention.'
That's why it should be used with other confluences like Support/Resistance, etc.
If you're using RSI and still don’t have a grip on divergences… you’re leaving money on the table.
📊 What are divergences?
They are signals that price and RSI are 'out of sync' — and this usually indicates a change or continuation of trend.
🔥 1. Bearish Divergence
📈 Price makes a higher high
📉 RSI makes a lower high
👉 Shows weakness of buyers
👉 Possible reversal to the downside
🔥 2. Bullish Divergence
📉 Price makes a lower low
📈 RSI makes a higher low
👉 Shows weakness of sellers
👉 Possible reversal to the upside
⚡ 3. Hidden Bearish Divergence (Continuation)
📉 Price makes a lower high
📈 RSI makes a higher high
👉 Market continues to fall
👉 Entry in favor of the trend
⚡ 4. Hidden Bullish Divergence (Continuation)
📈 Price makes a higher low
📉 RSI makes a lower low
👉 Market continues to rise
👉 Entry in favor of the trend
🚫 MISTAKE THAT MAKES YOU LOSE MONEY:
Using divergence in a sideways market.
💡 If the market is ranging:
➡️ RSI will give false signals
➡️ Divergences lose strength
👉 Best decision: DO NOT TRADE
🎯 GOLDEN RULE:
Divergence works best with: ✔ Clear trend
✔ Entry zones like Support/Resistance; FVG/OB/BB.
✔ Confirmation (candlesticks, structure, break)
💡Golden Tip:
'Divergence is not a signal to enter… it’s a signal to pay attention.'
That's why it should be used with other confluences like Support/Resistance, etc.
