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RSI divergence

bearish / bullish divergence

Price makes a new high but RSI doesn’t: the rally is losing strength underneath (bearish divergence). The mirror image at lows is a bullish divergence. Often an early warning sign.

In the screenerA divergence against the signal costs two points. For fade and reversal signals, a divergence in the same direction confirms the turn and adds a point.

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Related terms

All terms in the options glossary → · Methodology →