RSI Divergence – The Hidden Reversal Signal (Full Guide) 🔄📉📈 🔍 What is RSI Divergence? RSI (Relative Strength Index) divergence occurs when price and RSI move in opposite directions, signaling potential trend weakness and an upcoming reversal. Bullish Divergence: Price makes lower lows (LL), but RSI makes higher lows (HL) = Uptrend coming! Bearish Divergence: Price makes higher highs (HH), but RSI makes lower highs (LH) = Downtrend coming! 🎯 How to Spot RSI Divergence (Step-by-Step) ✅ Step 1: Identify the Trend Uptrend? Look for bearish divergence (warning of a drop) Downtrend? Look for bullish divergence (warning of a rally) ✅ Step 2: Check Price vs. RSI Bullish Divergence: Price: Lower Low (LL) RSI: Higher Low (HL) → Buyers gaining strength! Bearish Divergence: Price: Higher High (HH) RSI: Lower High (LH) → Sellers stepping in! ✅ Step 3: Wait for Confirmation Price must break structure (e.g., CHoCH or trendline) before entering! Avoid early entries—divergence can last longer than expected. 💡 Why RSI Divergence is Powerful ✅ Early Warning System – Spots reversals before price confirms ✅ Works in All Markets – Stocks, Forex, Crypto, etc. ✅ Combines Well with S/R, Trendlines, etc. 🚨 Critical: RSI Divergence vs. Fake Signals Not every divergence leads to a reversal. Avoid traps by: ✔️ Waiting for price confirmation (break of structure) ✔️ Using higher timeframes (Daily/4H divergence > 5M) ✔️ Checking volume – Divergence + high volume = Strong signal 📌 Advanced RSI Divergence Strategies 1️⃣ Hidden Divergence (Trend Continuation Signal) Bullish Hidden Divergence: Price higher low (HL), RSI lower low (LL) = Uptrend will continue Bearish Hidden Divergence: Price lower high (LH), RSI higher high (HH) = Downtrend will continue 2️⃣ RSI Divergence + Support/Resistance If divergence forms at a key S/R level, reversal odds increase. 3️⃣ RSI Divergence + MACD Combining RSI & MACD divergence strengthens the signal. 🎯 Pro Tips for Trading RSI Divergence ✔️ Use RSI (14) – Default setting works best ✔️ Avoid overbought/oversold alone – Divergence > OB/OS levels ✔️ Trade with the trend – Divergence in trend direction is stronger 🚀 Final Rule: RSI Divergence + Patience = Profit Divergence warns you—but price action confirms. Wait for the right moment! Want a live RSI Divergence breakdown? Comment below! 👇 #RSIDivergence #TradingSignals #SmartTrading