RSI Divergence Practice
Divergence is when price makes a new extreme but momentum does not follow — a quiet hint that a move is tiring. Train to spot the disagreement and, crucially, to wait for price to confirm it.
RSI (Relative Strength Index) measures the speed of recent moves. Bearish divergence is a higher price high paired with a lower RSI high — buyers are pushing but with less force. Bullish divergence is a lower price low with a higher RSI low. Divergence warns of exhaustion; it is not a timing signal by itself.
How to spot it
- ✓ Find two comparable swing highs (or lows) in price.
- ✓ Compare the RSI peaks (or troughs) at those same points.
- ✓ Price up but RSI lower = bearish divergence; price down but RSI higher = bullish.
- ✓ Divergence works best near a known support or resistance level.
- ✓ Wait for a price-action trigger — divergence can persist for a long time.
⚠️ Common mistake
Trading divergence on its own as a reversal. Strong trends can show divergence for ages while continuing. It is a warning to tighten up, not an automatic entry.
FAQ
Does divergence guarantee a reversal?
No. It signals weakening momentum, but trends can keep going. Pair it with a level and a price trigger, and always use a stop. This page is practice, not advice.
Which RSI setting should I use?
The default 14 is the most common, but the concept of divergence is what matters, not the exact period. Match it to your timeframe and test.