What is a divergence in the RSI and how do you see it?

Imagine that the price is rising... but the RSI is no longer following. The price hits a new high, but the RSI does not. That is a bearish divergence and is often a signal that the momentum is weakening, that the price "is rising but not with strength anymore" and a drop might be coming soon.

Now the reverse: the price is falling and falling, but the RSI starts to rise. The market is declining, but the RSI says: "not with as much strength anymore." That is a bullish divergence and can anticipate a rise.

How do you see it?

1. Open your chart (it can be on 4H, D1, or wherever you trade).

2. Add the RSI indicator (use the default value of 14).

3. Draw two lines:

One on the price (connecting the last two lows or highs).

And another on the RSI (at the same points).

4. If the lines go in opposite directions, that is a divergence.

Example to make it easy:

The price makes two peaks: one at 20 thousand and another at 21 thousand.

But the RSI at those peaks goes from 70 to 65.

Is the price rising? Yes.

Is the RSI rising? No.

Then that is a bearish divergence.

Of course, here’s a simple explanation, as if we were chatting:

💡 What can happen when there is a divergence?

It’s not magic, but often it is a signal that the price is about to turn or that the momentum is running out. It serves to stay alert, not to jump into trading without a plan.

If you are starting, look at it as a warning:

👉 "Watch out, what you see is not all that there is."

$ESPORTS