TATA STEEL LTD
Education

divergence secrets of RSI

64
# **Divergence Secrets of RSI**

RSI divergence helps traders identify **hidden market momentum shifts** before price movements occur, making it a powerful tool for **reversals and trend continuations**.

## **1️⃣ Types of RSI Divergence**
✅ **Regular Divergence (Reversal Signal):**
🔹 **Bullish:** Price ↓, RSI ↑ → **Trend reversal upward**.
🔹 **Bearish:** Price ↑, RSI ↓ → **Trend reversal downward**.

✅ **Hidden Divergence (Trend Continuation):**
🔹 **Bullish:** Price ↑, RSI ↓ → **Trend continuation up**.
🔹 **Bearish:** Price ↓, RSI ↑ → **Trend continuation down**.

## **2️⃣ Advanced RSI Divergence Trading**
✅ **Multi-Timeframe Analysis:** Stronger signals when confirmed across different timeframes.
✅ **Volume Confirmation:** Divergence + high volume = stronger trade setups.
✅ **Support & Resistance Zones:** Combine RSI divergence with key levels for precise entries.

### **Conclusion**
RSI divergence is a **highly effective strategy** for spotting early trend reversals and continuations, improving trade accuracy and risk management. 🚀

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.