🔄 RSI Divergence — Reliable Reversal Signal

Divergence occurs when price goes one way but indicator goes another. This is one of the most reliable reversal setups.

Bullish Divergence

Price makes lower low but RSI makes higher low. Signal: momentum weakening → reversal likely.

Bearish Divergence

Price makes higher high but RSI makes lower high. Signal: upward momentum weakening → top warning.

Hidden Divergence

Continuation signal (not reversal). Bullish hidden: price higher low + RSI lower low. Bearish hidden: price lower high + RSI higher high.

Entry Rules

1) Wait for divergence on daily chart. 2) Confirm with candlestick reversal (Hammer, Engulfing). 3) Stop loss below swing low. 4) TP at nearest resistance.

Combine with other indicators

Divergence + MACD cross + Volume increase = very strong setup. Win rate >70%.

🚀 Test this on Vnstock

🔗 Related Strategies

🔄 Mean Reversion — Buy Low, Sell High 🚀 Momentum Trading — Buy High, Sell Higher

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