Relative Strength Index (RSI) Divergence with Examples

RSI Divergence is a technical analysis term that indicates differences between an stock price and the Relative Strength Index (RSI). RSI Divergence can reveal vital information about potential trend reversals or the weakening of a current trend.

1) Bullish RSI divergence:

• Bullish RSI Divergence happens when the price of an stock creates lower lows while the RSI indicator makes higher lows.
• This shows that, while the price is striking new lows, the negative momentum is decreasing, and an upward move might be on the way.
• It can be an early sign of a weakening downtrend and potential uptrend.

RSI Bullish Divergence Strategy Screener And Example

In a downtrend RSI is making higher highs and higher lows while price is making lower high and lower lows.

Screeners

2) Bearish RSI divergence:

• Bearish RSI Divergence happens when the price of an asset makes higher highs while the RSI indicator creates lower highs.
• This indicates that, while the price is reaching new highs, the upward momentum is declining and a potential bearish reversal might be on the way.
• It might be an early sign of a weakening uptrend and the potential downtrend.

RSI Bearish Divergence Strategy Screener And Example

In a upward trend RSI is making lower high and lower lows while price is making higher high and higher lows.

Screeners

Relative Strength Index (RSI) Screeners

Overbought by RSI

US Screener IND Screener

Oversold by RSI

US Screener IND Screener

RSI Bullish Divergence

US Screener IND Screener

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