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  1. Home
  2. /Glossary
  3. /RSI Divergence
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trading

RSI Divergence

When the RSI indicator moves in the opposite direction of price, signaling a potential reversal.

Definition

When the RSI indicator moves in the opposite direction of price, signaling a potential reversal. Bullish divergence happens when price makes lower lows but RSI makes higher lows. Bearish divergence is when price makes higher highs but RSI makes lower highs. It's one of the most reliable reversal signals in crypto trading.

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Related Terms

RSI (Relative Strength Index)

A momentum oscillator that measures the speed and size of recent price changes on a scale from 0 to 100.

Convergence/Divergence

When a technical indicator moves in the same direction as price, that's convergence and confirms the trend.

Technical Analysis

Studying price charts and patterns to predict future movements.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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