What Is The RSI Divergence Technical Indicator?

[RobertoCalderoli]

RSI divergence is a technical indicator that occurs when the price of an asset moves in one direction while the Relative Strength Index (RSI) moves in the opposite direction, signaling a potential weakening of the current trend and a possible reversal. It is used by traders to anticipate trend changes, with a bearish divergence showing price making higher highs while RSI makes lower highs, and a bullish divergence showing price making lower lows while RSI makes higher lows.

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