what is RSI divergence

what is RSI divergence is a significant concept in technical analysis, particularly in trading. It occurs when the price of an asset moves in the opposite direction to the Relative Strength Index (RSI) indicator. Indicating a potential reversal in the prevailing trend. Traders use it divergence as a powerful tool to identify potential turning points in the market. Bullish divergence occurs when the price makes lower lows while  forms higher lows. Suggesting weakening bearish momentum and a potential bullish reversal. Conversely, bearish divergence occurs when the price makes higher highs while  forms lower highs. Signaling weakening bullish momentum and a potential bearish reversal. By recognizing  divergence patterns, traders can anticipate market reversals more effectively. Helping them to make informed trading decisions and capitalize on profitable opportunities in the financial markets.

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