Spotting RSI Divergence A Powerful Trading Signal

RSI divergence is a key indicator in technical analysis signaling potential trend reversals When price moves in the opposite direction of the RSI it suggests weakening momentum Bullish divergence occurs when price forms lower lows but RSI forms higher lows hinting at a possible upward shift Bearish divergence is the reverse Traders often use it to identify entry and exit points Combine RSI with volume or trendlines for stronger signals

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