#Learning of the day

RSI (Relative Strength Index) is one of the most useful tools in my trading kit. It helps me understand momentum—whether an asset is overbought or oversold. The RSI ranges from 0 to 100. When it’s above 70, the asset might be overbought (a potential reversal or pullback). When it’s below 30, it might be oversold (possible bounce or trend shift).

But here’s where it gets really interesting: RSI divergence.

This happens when the price and RSI move in opposite directions. For example:

Bullish divergence: Price makes a lower low, but RSI makes a higher low. This suggests selling pressure is weakening—buyers could step in.

Bearish divergence: Price makes a higher high, but RSI makes a lower high. This warns that momentum may be fading, and a drop could follow.

RSI divergence isn’t a signal to trade blindly—but when combined with trendlines or support/resistance, it becomes a powerful confirmation tool.

I always look for RSI divergence before entering swing trades. It’s a game-changer when used right.

#RSI #TechnicalAnalysis #CryptoTrading #Divergence #Binance