RSI divergences: do you still use them?

Price makes a new high, RSI doesn't — the classic bearish divergence. It's taught everywhere and fails everywhere, which is why traders either abandoned it or learned strict conditions for when it works.

RSI divergences: do you still use them? — trend versus range diagram
A trending market compared with a ranging one

What's your verdict?

  • the conditions under which divergence works for you
  • how you avoid calling tops in a strong trend
  • whether you use hidden divergence too
RSI divergences: do you still use them? — moving average crossover diagram
A fast moving average crossing a slower one

The RSI guide covers regular and hidden divergence and their failure modes.

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