RSI divergence

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RSI divergence

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RSI divergence occurs when a coin makes a new high or low in price but the RSI does not make a corresponding new high or low value. A bearish divergence forms when a coin price records a higher high and RSI forms a lower high. RSI does not confirm the new high and this shows weakening momentum.  Bullish divergence, which is interpreted as a buy signal, occurs when price makes a new low, but the RSI value does not. Divergence signals tend to be more accurate on the longer time frames (min 1-hour charts). You get fewer false signals.