📉 DAY 44: Divergences with the RSI. Anticipates market turning points

Normally, price and the RSI move together: if the price rises, the RSI rises; if the price falls, the RSI falls. But sometimes, the market does something strange: they get out of sync. We call that lack of coordination a Divergence, and it’s one of the most powerful warning signals in trading.

Imagine it like a car going uphill: the car keeps moving forward upward (the price rises), but the engine starts to lose power (the RSI falls). What do you think will happen soon? The car will roll back down.

There are two main types your community should memorize:

🐻 1. Bearish Divergence (Downside Alert)

It happens when the price on the chart is making higher and higher highs (it looks like it’s pushing up with strength), but the RSI is making lower and lower highs.

What does it tell us? Buyers are pushing the price purely out of inertia or manipulation, but they’re losing real momentum. It’s a clear sign that the price could collapse soon.

bull 2. Bullish Divergence (Upside Alert)

It happens when the price is making lower and lower lows (it looks like it’s going to zero and there’s panic), but the RSI starts making higher and higher lows.

What does it tell us? Even though the price drops, selling pressure is running out and smart money is starting to accumulate in secret. It’s a sign that a strong rebound upward is near.

🛠️ How to trade it safely?

Don’t rush: Seeing a divergence doesn’t mean you should place a trade immediately. Wait for a Japanese candlestick to confirm the reversal (for example, a candle with a long lower wick in the support zone).

Timeframe: Just like yesterday, look for them on 1-hour, 4-hour, or 1-day charts. On 1- or 5-minute charts they usually give many false signals due to market noise.

🧠 Today’s lesson:

Divergences are the market’s X-rays. They let you see beneath the surface to discover whether a move has real strength or if it’s just a mirage. Learning to spot them will save you from buying at the highs and help you catch excellent prices at the lows.

🔥 Day 45 tomorrow: We’ll close this technical block with a key tool to secure the profit—Trailing Stop Loss. How to let your gains run safely while the market is rising.

Have you ever seen that the price goes up but you feel it has no momentum? You’ve just discovered why it happens! Want to look for a divergence on Binance today? 👇

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