25/05/2025
RSI (Relative Strength Index) Divergence is a technical analysis concept that can signal potential reversals in price trends. It happens when the price of an asset and the RSI indicator move in opposite directions.
Types of RSI Divergence:
1. Bullish Divergence:
Price makes lower lows
RSI makes higher lows
May signal a potential upward reversal
2. Bearish Divergence:
Price makes higher highs
RSI makes lower highs
May signal a potential downward reversal
Hidden Divergence:
Indicates trend continuation rather than reversal.
Hidden Bullish: Price makes higher lows, RSI makes lower lows.
Hidden Bearish: Price makes lower highs, RSI makes higher highs.
