🚨 Why Strong Moves Suddenly Fail
Quick definition:
RSI divergence happens when price and momentum disagree.
Price shows strength or weakness…
RSI says not really.
That’s your clue.
The two divergences that matter:
Bearish divergence:
• Price makes a higher high
• RSI makes a lower high
Price is pushing up, but buyers are weaker.
Momentum is fading.
Bullish divergence:
• Price makes a lower low
• RSI makes a higher low
Sellers are pushing price down, but they’re running out of fuel.
Important part 👇
Divergence does not mean “enter now”.
When should you actually respect RSI divergence?
👉 After an extended move
👉 Near key support / resistance
👉 Around liquidity grabs
👉 When volume starts drying up
Divergence works best as a context tool, not a trigger.
Most reversals don’t start with a big candle.
They start with momentum failure.
To conclude:
RSI divergence doesn’t predict price.
It exposes weak moves.
It tells you when the crowd is pushing…
but strength is no longer there.
Wait for structure.
Wait for confirmation.
Let others trade the signal.
You trade the trap.