RSI Divergence – A Hidden Signal Worth Watching

Divergence between price and the Relative Strength Index (RSI) can be an early clue of a potential reversal.

Types to look for:

Bullish Divergence: Price makes a lower low, but RSI makes a higher low — signals weakening selling pressure.

Bearish Divergence: Price makes a higher high, but RSI makes a lower high — signals weakening buying strength.

Tip: Combine divergence with support/resistance or trendlines for stronger confirmation.

Smart traders don’t just follow momentum — they understand when it’s fading.

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